Question: Explain why successful firms that employ markup pricing use fully allocated costs under normal conditions, but typically offer price discounts or accept lower margins during

Explain why successful firms that employ markup pricing use fully allocated costs under normal conditions, but typically offer price discounts or accept lower margins during off-peak periods when excess capacity is available.

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Fully allocated costs can be appropriate when a firm is operating at full capacity During peak periods when facilities are fully utilized expansion is ... View full answer

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