Your response must also include proper American Psychological Association (APA) citation and referencing with working web links. Further, it must include between 250 and 350 words. Refer to discussion board rubric for grading details.

excess of a targeted level of prom Case 3.2 Jensen PVC (LO2) Jensen PVC, Inc., produces polyvinyl chloride (PVC) irrigation pipes. In 2020, the cost of producing a foot of pipe was $0.30, and the selling price was $0.39 per foot. In 2021, production costs increased to $0.40 per foot, although the selling price remained at $0.39. 2020 2021 Selling price Production cost $0.39 0.30 $0.39 0.40 The increase in cost was obvious. Material and labor had remained fairly constant per foot of pipe, but overhead costs, which were $0.15 per foot in 2020, had increased to $0.25 in 2021. The problem was that most overhead costs were fixed, but output had decreased due to weak crop prices and a correspond- ing decrease in spending on irrigation projects. Bob Elger, CFO of Jensen, reviewed the data generated by the company's process costing system. In 2020, overhead costs in all of the company's departments (mixing, extrusion, cutting, and pack- ing) were $1,500,000, and pipe production was 10,000,000 feet. In 2021, overhead costs were still approx- imately $1,500,000, but pipe production decreased to 6,000,000 feet. At a recent meeting of the senior management team, Bob noted: "The problem is that we're not making use of capacity. We could easily produce 15,000,000 feet of pipe given our state-of-the-art equipment, but we're operating at less than 50% of capacity." Required Bob estimates that to sell 15,000,000 feet of pipe in the current market, the company would have to lower its price to $0.35 per foot, which is even lower than its current cost per foot of $0.40. Would decreasing the price be a good decision