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Due to the marginal results of operations of the Colorado factory, Chase has decided to cease its operations and sell that factory s machinery and

Due to the marginal results of operations of the Colorado factory, Chase has decided to cease its operations and sell that factorys machinery and equipment by year-end. Chase expects that the proceeds from the sale of these assets would equal all termination costs. Chase would like to continue serving most of its customers in that area if it is economically feasible and is considering one of the following three options:
Option A: Expand the operations of the Kansas factory by using idle space. This move would result in the following changes in that factorys operations:

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