Given above: Sun company wrote to Moon company for selling 300 bags of cement for $10 a bag. Moon company then inquired more about shipping and packaging costs. Then three days later, when prices of same bag were rising, Moon company accepted offer from Sun company so that they don't incur more costs.

The first part is a part of law and economics. There is no contract relationship between the two companies as there was no written agreement at the time they were discussing the matter. The Moon company only accepted an offer for a previously stated price (3 days prior) because it saw that it would incur more costs. Hence, since there was no written agreeement there is no legal obligation on part of Sun company to accept or carry out that order.

There are 2 primary methods in which Sun company can increase profits:
1) Having a low price can attract customers but too low would cause losses. Thus, company can increase price to the point where it is just below the price that the same quality of cement has risen to. Thus, it generates profit through the higher number of sales.

2) Changing the costs of packaging and shipping accordingly to cost of bag. This method may or may not be illegal.