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Clearwater Company operates a wine outlet in a tourist area. One gallon bottles sell for $12. Daily fixed costs are $3,000, and variable costs are

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Clearwater Company operates a wine outlet in a tourist area. One gallon bottles sell for $12. Daily fixed costs are $3,000, and variable costs are $6 per gallon. An average of 750 gallons are sold each day. Clearwater has a capacity of 800 gallons per day. Determine the average cost per gallon. A bus loaded with 40 senior citizens stops by at closing time and the tour director offers Clearwater $300 for 40 gallons. Clearwater refuses, saying they would lose $2.50 on each gallon. Is Clearwater correct about losing the $2.50? Why or why not? A fund-raising organization has offered Clearwater a one-year contract to buy 300 gallons a day for $7.50 per gallon. Should they accept the offer? Why or why not

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