You manage an auto service store. One of your major services is brake replacement. You purchase replacement parts at an average cost of $30 per set. Each set contains parts for four wheels and will repair one car. You charge an average of $100 per car for replacing worn brakes, including an average labor cost of $40. Your current volume for brake replacements is about 700 jobs per month. A new vendor has contacted you with an offer to sell you replacement parts at an average cost of $22.50 per set. After checking on the quality of these parts, you find that their average life is about two-thirds that of the parts you are currently using.

Required
A. What are the short-run profit implications of using the $22.50 brakes instead of the $30 brakes?
B. What are the long-run profit implications?
C. What ethical issues should be considered in choosing which brakes to use?