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:
