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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 and the X deluxe. Both products are currently packaged in a singlewall corrugation. Through close observation, the firm has discovered that percent of both Xs and Xs are damaged between packaging and customer delivery. Chronotronics can package either model, or both, in doublewall corrugated fiberboard, which would reduce product damage by half. The current singlewall packaging costs $ per unit. Doublewall packaging costs percent more. The X and X have market values of $ and $ respectively. Damaged units are a total loss. Chronotronics sold Xs and Xs last year. Forecasts indicate consistent sales for the X and a percent increase in X sales over the next year. Note: Round up for whole units lost. a From a leastcost perspective, should Chronotronics utilize doublewall corrugation with the X next year? b From a leastcost perspective, should Chronotronics utilize doublewall corrugation with the X next year? c What options, other than packaging changes, might Chronotronics consider?
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