Question

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

Answer 1

Answer:

.07

Explanation:

Calculation for the increase in service level

Based on the information given we were told that the newspaper stand cost the amount of $0.40 and sell for the amount of $0.80 which means that in a situation where the stand owner find an outlet that provide a salvage value amount of $0.10 the increase in service level will be .07 calculated as ($0.80-$0.10)

Therefore what would be the increase in service level will be .07