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Mollyplast, Inc. Mollyplast, Inc. is a medium-size manufacturer of plastic cups and similar commodities produced by injection molding. Their normal monthly output is x gross.

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Mollyplast, Inc. Mollyplast, Inc. is a medium-size manufacturer of plastic cups and similar commodities produced by injection molding. Their "normal" monthly output is x gross. They have a relatively steady customer base on the East coast but in recent months their market has "softened" and they are experiencing excess capacity: their output has shrunk to y gross per month. The usual price for the cups is $v per gross. They have recently received a tentative order from a supermarket chain located in the Midwest for z gross of this product but the offered price is $w per gross. Jim Dine, Mollyplast's CEO, must decide whether to accept or reject the offer. The table below shows the accounting department's estimate of Mollyplast's costs, calculated at a "normal" output level (i.e., when Q = x gross). In this sample problem x = 35,000 gross, y = 25,000 gross, v = $45, z = 7,000 gross and w = $35. (There are different values for (1) through (7) and x, y, w, z and v for each student, shown in Table 2.) Each student's number is listed in Table 1. Your assignment: Use incremental analysis to determine if the offer from the supermarket chain located in the Midwest should be accepted or rejected. Show all your calculations and explain

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