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Business, 13.10.2020 05:01 hjeffrey168

Monty Inc. produces organic cranberry juice from cranberries it farmed. Unfortunately, it has been a bad year for cranberries because of severe cold weather. Monty has only 10,000 litres of juice. It usually sells 15,000 litres at $3.10 per litre. The variable costs of farming the cranberries are $0.90 per litre. Monty 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 5,000 litres of extra cranberry juice at $3.00 per litre. Required:
Using the general decision rule, what is the most per litre that Riverbed's managers would be willing to pay for additional juice?

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Monty Inc. produces organic cranberry juice from cranberries it farmed. Unfortunately, it has been a...

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