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Accounting[Name][Course Title][University][Instructor Name][Date]AbstractThis paper considers the concepts of contribution margin, which can be applied in order to keep a product`s price. It also evaluates the decision made by Paul Pecos to accept only those offers which offer $300 or more for each unit. The paper includes a comparison of income statements in both the condition; when the decision was applied, and when the decision did not apply. AccountingPecos Printers needs to keep a price per printer of less than $400 in order to aging competitive advantage in the industry. The standard mark up in the industry is 50%, therefore, in order to attract more and more customers. The product by Pecos Printers is desirable because of its features therefore there is no reason for customers to ignore this offer. Paul Pecos, the Chief Executive Officer of Pecos Printers has come up with a plan that needs to apply throughout the organization. He said that all the offers for per unit price of $300 or more would be accepted and all other offers would be turned down. This decision was taken in order to retain a certain proportion of profit on the total sales of printers. Contribution margin that is the difference between sales and marginal cost is sought to be increased (Blocher, 2006). Salesmen of the organization were bound to follow the decision and they were not allowed to ignore it in any circumstances. One of the salesmen received an offer than asked for 700 units at $290 per unit. She considered i...