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EXERCISE 8-1. [LO 1, 2] Consider a company that manufactures and sells personal computers (let's...

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Accounting

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EXERCISE 8-1. [LO 1, 2] Consider a company that manufactures and sells personal computers (let's call the company Bell Computers). Recently the company lowered its prices dramatically. The company is very efficient and needs only 5 days of inventory, collects its receivables within 30 days, and has suppliers who are willing to wait 59 days for payment. A competitor commenting on the aggressive pricing stated, "Were in a commodity business, and a price war in a commodity business is really dumb." REQUIRED Discuss the competitor's comment that lowering prices is a dumb move by Bell Computers

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