The problem begins in the factory. If there is pressure to keep people working and to produce the corresponding amount of goods, this excess will suppress prices. Low variable unit costs and high fixed costs , which are a blessing in good times, become a curse in a crisis. High fixed costs need to be spread across the largest possible number of goods. At the same time, low variable unit costs mean that it is still possible to get a positive unit contribution despite low prices. All of these factors conspire to put formidable pressure on the sales force, which uses price concession s to try to
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