Can a company sustain making free gifts of its products


Questions:

1. The company uses hedging transactions (advance purchase) to eliminate the unpredictable nature of the cost of fuel. What other operating costs might have an element of unpredictability?

2. Can a company sustain making free gifts of its products when the marginal cost of production is relatively high?

3. What does the first company see as the risk of charging the full cost of vaccines to all countries?

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Accounting Basics: Can a company sustain making free gifts of its products
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