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Company X has an established normal spoilage rate of 5% that is consistent with...

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Company X has an established normal spoilage rate of 5% that is consistent with the industry's average. However, company X recently changed to a 10% normal spoilage rate. Explain briefly the main consequences of Company X's choice in the two following scenarios: 

a) actual spoilage rate is 4% 

b) actual spoilage rate is 8%

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