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Paul Parson's Pickled Peppers Compete with Peter Piper's Pickled Peppers

Question 6

Multiple Choice

Paul Parson's Pickled Peppers compete with Peter Piper's Pickled Peppers. Peter Piper has such a superior product that Paul Parson feels that his pickled peppers might be impaired. Paul calculated that selling costs per peck of pickled peppers are $2. Paul also did market analysis and determined that in order to compete with Peter Piper, he can sell his peppers for $20 per peck at maximum. The cost per peck of Paul's pickled peppers is $19. What is the net realizable value of a peck of Paul Parson's Pickled Peppers? Are they impaired?


A) $17; Impaired
B) $18; Impaired
C) $19; Unimpaired
D) $20; Unimpaired
E) None of the above

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