5. Concluding Remarks
Once an order is taken, we need to compare the T/CU of each item in the order with
min. T/CU. Thus we can arrive at the profitability of an order. Also, priority should be
given to orders with higher T/CU. By restricting the orders to be executed to only to
those that achieve min. T/CU, we can ensure that the profit objective is completed. On
the other hand, in a cost-plus pricing method, the profit (%) may be compromised
while achieving sales targets.