Pricing a Service E 6. Texas has just passed a law making it
mandatory to have every head of cattle inspected at least once a year for a
variety of communicable diseases. Big Springs Enterprises is considering
entering this inspection business. After extensive studies, Tex Autry, the
owner of Big Springs Enterprises, has developed the following annual
Autry believes his company could inspect 250,000 head of
cattle per year. On average, the company now earns a 16 percent return on
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