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Suppose That Papers for a Newspaper Stand Cost $0

Question 53

Multiple Choice

Suppose that papers for a newspaper stand cost $0.40 and sell for $0.80. They currently have no salvage value. If the stand owner is able to find an outlet that would provide a salvage value of $0.10, what would be the increase in service level?


A) 0.5
B) 0
C) 0.07
D) 1
E) unable to determine given only the above information

Correct Answer:

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