Suppose That a Newspaper Stand Is Operating Under the Following

question 111

Multiple Choice

Suppose that a newspaper stand is operating under the following conditions; papers cost $.4, have no salvage value, and sell for $.80. If the salvage value is increased by $.1, what is the increase in service level?

• A) .5
• B) 0
• C) .07
• D) 1
• E) unable to determine given only the above information

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