Question

Last year your company built 1,500,000 units of product Able and sold 1,405,000 After 14 months in R&D, a revision of product Able is due out tomorrow, on January 2 (the first business day of this year) What will happen to the unsold inventory of 95,000 units of "old" product Able?

Answer 1

Answer:

The answer is: The 95,000 units of "old" product should be reworked to match the specifications for the "new" product Able

Explanation:

Before "new" product Able was put on sale, I guess that the company tried to sell some of the "old" units at a discount price but still many remained. In my opinion the best thing to do with the "old" units of product Able would be to rework them and turn them into units of "new" product Able.

The specifications between the older version and the newest one probably vary only a little (14 months is not a long time for R&D), so the reworking the "old" units shouldn´t be that difficult or expensive.