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Chronotronics produces two models of clock radios, the X - 1 0 0 and the X - 2 5 0 deluxe. Both products are currently

Chronotronics produces two models of clock radios, the X-100 and the X-250 deluxe. Both products are currently packaged in a single-wall corrugation. Through close observation, the firm has discovered that 1.5 percent of both X-100s and X-250s are damaged between packaging and customer delivery. Chronotronics can package either model, or both, in double-wall corrugated fiberboard, which would reduce product damage by half. The current single-wall packaging costs $1.10 per unit. Double-wall packaging costs 20 percent more. The X-100 and X-250 have market values of $45 and $75, respectively. Damaged units are a total loss. Chronotronics sold 14,000 X-100s and 8,000 X-250s last year. Forecasts indicate consistent sales for the X-100 and a 7 percent increase in X-250 sales over the next year. Note: Round up for whole units lost. a. From a least-cost perspective, should Chronotronics utilize double-wall corrugation with the X-100 next year? b. From a least-cost perspective, should Chronotronics utilize double-wall corrugation with the X-250 next year? c. What options, other than packaging changes, might Chronotronics consider?

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