What is the most per litre that bridgeport managers pay

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Problem - Bridgeport Inc. produces organic cranberry juice from cranberries it farmed. Unfortunately, it has been a bad year for cranberries because of severe cold weather. Bridgeport has only 8,900 litres of juice. It usually sells 14,100 litres at $3.10 per litre. The variable costs of farming the cranberries are $0.90 per litre. Bridgeport has loyal customers, but its managers are worried that the company will lose customers if it does not have juice available for sale when people stop by the farm. A neighbour is willing to sell 5,200 litres of extra cranberry juice at $3.05 per litre.

Using the general decision rule, what is the most per litre that Bridgeport's managers would be willing to pay for additional juice?

Reference no: EM132632398

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