How much better off would the fresh connection


Problem

The Fresh Connection sells cases of PET bottles to the sports camps at a price of $15.94 and the materials cost an average of $4.26 per case. They produce 6,041 cases of the PET bottles per week. However, because camp enrollments vary, the number of cases needed per week varies, leaving them with extra product. Since this is a specialty product, they cannot store any of the extra product produced each week. Now, however, you have offered to pay them $2.63 per unsold case each week {salvage value} because you plan to sell them to other camps in the area. They sell 4,071 cases for one particular week, discarding the difference.

How much better off would The Fresh Connection be for the week if they accepted your offer for the unsold cases rather than simply discarding them?

Do not round anything until you get to the end of the problem and then round to two decimal places.

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