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jarptica [38.1K]
3 years ago
15

Assuming that the MR Corporation has an inventory of 200 defective motors costing $450,000 to produce and $150,000 to repair, if

the company receives an offer to purchase these motors for $325,000 before repairing them, the company's decision should be to sell the motors at the offered price.True / False.
Business
1 answer:
ella [17]3 years ago
6 0

<u>Answer: </u>True

<u>Explanation:</u>

Here for calculation of the profit or loss the cost of production cannot be used for comparison as they are the sunk cost it cannot be used for taking sale or rework decision. It is given the proceeds from the sale of inventory would be $425,000 and the cost of rework will be $150,000.

Net proceeds from sale of units = 425000 - 150000

=$275,000

It is clear that these profits are lower than the sale of these units without repair. Sale proceeds without repair is $325,000. So MR corporation can make decision to sell the units without repair for better benefits.

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Answer:

The correct answer is True.

Explanation:

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With word of mouth advertising, you can surely get your business to reach different cities; but not at the speed that is required to recover the investment invested.

Businesses that have a local advertising plan will be able to bring their products and / or services to potential customers located in the target geographic area and increase their recognition as a local brand.

We are sure you have heard the following quotes; <em>"The best publicity is what satisfied customers do"</em> by Philip Kotler, and "What helps people helps business" by Leo Burnett

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3 years ago
Nadiya, your classmate, is struggling to keep up with class. Last week, she told you that she even thought about cheating on a t
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Answer:

fundamental attribution error.

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The Professor makes this "fundamental attribution error" by failing to consider Nadiya's situation; meaning the situational information was insufficiently taken into account before reaching a conclusion (Probably Nadiya is under emotional distresse maybe she's grieving the death of her Farther).

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I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

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