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telephone-wart with the company in the leisure industry, Caledonian has sought to develop a market with other companies operating in the leisure industry. Assume that this process has resulted in potential customers that are prepared to enter into a contractual agreement for a three year period for a supply of 15 jumpers per month at an agreed price of £25 per jumper. The cost of inserting the insignia required by each customer would remain unchanged at £1 per jumper. No marketing and distribution costs would be incurred with any of the orders. Caledonian considers that it has investigated all other 1