Selling 8th Edition by Stephen Castleberry,John Tanner

Exercise 9

Mitchell's Metal Shop is considering the purchase of a new press, a machine that bends sheet metal. The cost is $10,000, which is about 25 percent of the firm's profit for the quarter. Ford Motor Company is also considering buying about 30 new presses. Discuss how risk is different for Frank Mitchell, owner of Mitchell's Metal Shop, and Ford.