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Cost of relabeling the cans

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Olde Store has 12,000 cans of crab meat just a week past the expiration date. Each can cost $0.31. The cans could be sold as is for $0.20 each, or relabeled and sold as gourmet cat food. The cost of relabelling the cans would be $0.04 per can and the cans would then sell for $0.29 per can. What should be done with the cans and why?

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This solution discusses a hypothetical situation where a business must decide what course of action to take with an expired product in order to get the biggest profit.

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It should relabel and sell, as this would reduce their losses. If they ...

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