Step-by-step Instant Solution
WilmingtonChemicals produces a chemical, PX44, which is used to retard fading in exteriorhouse paint. In the past year, the company produced 200,000 gallons at a totalcost of 1,200,000 ($6 per gallon). The company is currently considering an orderfor 15,000 gallons from a paint company in Canada. (To date, Wilmington has notsold the product in markets outside the United States.) Explain why theincremental cost associated with this order is likely to be less than $90,000.
Paper#9255541 | Written in 27-Jul-2016Price : $22