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Vident Ltd has 1,000 commercial frozen ice machines in inventory produced at a cost of $4,000 each (60% variable and 40% fixed) . The machines were to have been sold for $10,000 each. However, the machines currently contain a minor malfunction, reducing their selling price to $1,500 each. The company could correct the malfunction at a variable cost of $2,500 each, and then sell the machines for $5,500 each. For purposes of determining whether the machines should be reworked, what is the opportunity cost per unit?
Over-Empowered
Describes a situation or person having too much power or authority, leading to potential misuse or imbalance in a system or relationship.
Representative Employees
Workers chosen or elected to voice the concerns and interests of their colleagues during negotiations or in discussions with management.
Noncontroversial Issues
Noncontroversial issues refer to topics or matters that generally do not evoke strong disagreements or opposition, often allowing for easier consensus or discussion.
Lean Production
An approach to manufacturing that emphasizes reducing waste and improving efficiency and quality in the production process.
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