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Hawthorne has just signed a contract with Pynes to sell them 100,000 lbs of plastic strapping each month for the next 6 months.If they sell
Hawthorne has just signed a contract with Pynes to sell them 100,000 lbs of plastic strapping each month for the next 6 months.If they sell high quality strapping, they get $0.60/lb; if they sell average quality strapping, they get $0.50/lb.Pynes will buy either quality of strapping.But this project will also allow Hawthorne to develop the skills to sell strapping on the retail market once these 6 months are up.At that time, the average retail market prices will be:
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