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Unformatted text preview: 3 they lose $20 since they are currently at idle capacity 4 The decision should be made based on whether both decisions are operating at idle capacity , or if only one is. C12-35 Electronics Clock 12.5 70 8.25 69.75 4.25 0.25 Sell to clock for 9 Cost/Benefit Cost $(4.25) Benefit $0.75 Total $(3.50) Do not They should not transfer since it is a negative cost/benefit analysis....
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- Spring '07
- Accounting, Optimism bias, Cost/Benefit Analysis