Pricing Decision BPO’s management believes the company has been successful at increasing sales…

Pricing Decision

BPO’s management believes the company has been successful at increasing sales because it has

not increased the selling price of its products even though its competition has increased prices

and costs have increased. Price and cost relationships in Year 1 were established because they represented

industry averages. The following income statements are available for BPO’s first three

years of operation: