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Clinton Carpet produced 1.218 yards of its economy-grade carpet. In the coloring process, there was a pigment defect, and the resulting color appeared to be
Clinton Carpet produced 1.218 yards of its economy-grade carpet. In the coloring process, there was a pigment defect, and the resulting color appeared to be faded. The carpet normally sells for $ 18 per yard: $ 8 of variable cost per yard and $ 7 of fixed cost per yard have been assigned to the carpet. The company realizes that it cannot sell the carpet for $ 18 per yard through its normal channels, unless the coloring process is repeated. The incremental cost of the process is $ 3 per yard. However, Practical Home Solutions is willing to buy the carpet in its current faded condition for $9 per yard. Should Clinton repeat the coloring process or sell the carpet to Practical Home Solutions? fotal incremental benefit is $ Clinton should repeat the coloring process sell the carpet to Practical Home Solutions eTextbook and Media Save for Later Attempts: 0 of 3 used Submit
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