A Company Normally Sells Its Product for $20 Per Unit

question 63

Multiple Choice

A company normally sells its product for $20 per unit.However,the selling price has fallen to $15 per unit.This company's current inventory consists of 200 units purchased at $16 per unit.Replacement cost has now fallen to $13 per unit.What is the amount of the lower cost of market adjustment the company must make as a result of this decline in value?

• A)$1,000.
• B)$1,400.
• C)$400.
• D)$600.
• E)$800.

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Definitions:

Normative Appeal

A persuasive strategy that relies on societal norms and values to influence behavior.

Verbal Negotiation Tactics

Strategies used in dialogue to persuade or influence others to reach an agreement.

Terms

Conditions or stipulations specified in an agreement, contract, or understanding between parties.

Active Listening

A method of communication where the listener fully focuses on the speaker, comprehends their message, offers responses, and remembers what was conveyed.