Larkspur Inc. produces organic cranberry juice from cranberries it farmed. Unfortunately, it has been a bad year for cranberries because of severe cold weather. Larkspur has only 9,300 litres of juice. It usually sells 13,300 litres at $2.90 per litre. The variable costs of farming the cranberries are $1.00 per litre. Larkspur has loyal customers, but its managers are worried that the company will lose customers if it does not have juice available for sale when people stop by the farm. A neighbour is willing to sell 4,000 litres of extra cranberry juice at $2.85 per litre.

(b)Using the general decision rule, what is the most per litre that Larkspur's managers would be willing to pay for additional juice?(Round all entries to 2 decimal places, e.g. 1.25.)

Managers would be willing to pay up to $