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seropon [69]
3 years ago
5

Fancy Furniture produced a batch of 2,000 coffee tables at a cost of $355,000. It was discovered that the entire batch was finis

hed improperly. Fancy can sell the tables as seconds for $305,000 or spend an additional $315,000 to refinish them and sell them for $605,000.
Which of the following is not relevant to management's decision regarding refinishing the tables or selling them as is?
a) The additional $300,000 revenue that can be generated if the tables are refinished.
b) The $355,000 manufacturing cost of the tables already incurred.
c) The additional $315,000 cost to refinish the tables.
d) The effect of selling "seconds" on Fancy's reputation as a fine-furniture manufacturer.
Business
1 answer:
Law Incorporation [45]3 years ago
7 0

Answer:

b) The $355,000 manufacturing cost of the tables already incurred.

Explanation:

The Business has already incurred this expense in making the coffee tables, this can not be done. Therefore, it does not make sense to consider this when considering whether to complete the

Tables, or sell them as they now are

All other points contribute either directly or indirectly to the decision that the company is about to take in this regard.

So, the correct answer is b

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3 years ago
Strategic behavior is required to win a presidential election. For each example below, indicate if it is a rule, strategy, or pa
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Answer:

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3 years ago
McCarthy Industries has two sales territories-East and West. Financial information for the two territories is presented below: E
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Answer:

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Explanation:

The computation of the amount of the change in the income in the case when the east territory is eliminated is shown below;

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