Melissa Has an Old Car That Is Desperately in Need

question 173

Multiple Choice

Melissa has an old car that is desperately in need of expensive repairs. She is trying to decide whether she should spend the $1500 she has in her savings account to repair her old clunker, or whether she should use her savings to buy the used car that her neighbor has for sale. As Melissa considers which of these two options she will select, she is facing

• A) an approach-approach conflict
• B) an approach-avoidance conflict
• C) an avoidance-avoidance conflict
• D) a frustration-pressure conflict

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Definitions:

Net Operating Income

The total profit of a business after operating expenses are subtracted from gross profit but before taxes and interest are deducted.

Total Manufacturing Cost

The aggregate expense incurred in the production of goods, including direct materials, direct labor, and manufacturing overhead.

Work in Process

Inventory that represents partially completed goods which are still in the production process.

Actual Manufacturing Overhead Cost

The actual costs incurred for indirect manufacturing expenses, such as utilities, rent, and maintenance.