Exercise.

(Page 107)

A: We're about to launch new fast food and surgery cereal aimed at kids and would like to
commission a set of illustrations for the advertising campaign.

B: That sound awesome. We have lots of experience working on this type of project. We
charge a base price of $200 per illustration. How many do you need?

A: We need a set of ten initially. However, $200 per illustration seems a little expensive.
Would you consider an offer of $150 each?

B: Unfortunately, our overheads won't allow that kind of discount. What we can do is offer a
10% discount on an order of ten illustrations or a 20% discount on an order of twenty.

A: I see. I think we can accept the offer of a 10% discount on ten illustrations. The twenty
illustration deal is tempting, but we just don't need it at this time. The other important point
for us is the jurisdiction on the contract. It's important for us it falls under US jurisdiction.

B: That's sound reasonable. Let's go ahead with that. Will there be any penalties for late
submission?

A: That's a good question. Let's adjourn here and I'll speak to my superiors about that and
get back to you.