By Making the PDP 11 Minicomputer an Integral Part of the Therac-25

question 20

Multiple Choice

By making the PDP 11 minicomputer an integral part of the Therac-25, AECL was able to

• A) reduce costs by replacing hardware safety features with software safety features.
• B) increase the stock price of its subsidiary Digital Equipment Corporation.
• C) shrink the size of the machine considerably.
• D) eliminate the need for lead shielding.
• E) All of the above

Evaluate the suitability of specific pricing strategies for different types of products and market conditions.

Explain the concept of target return on investment as it relates to pricing decisions.

Understand the utilization of cost-plus-fixed-fee and cost-plus-percentage-of-cost pricing in contract agreements.

Analyze the use of target profit pricing in achieving specific financial objectives.

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Definitions:

Traded Stock

Shares of a company that are bought and sold in public markets, such as stock exchanges, representing ownership interests in the corporation.

Callable Bond

A type of bond that gives the issuer the right to repay the bond before its maturity date at a predetermined price.

Buy Back

The process by which a company repurchases its own shares from the marketplace, reducing the amount of outstanding stock.

Maturity

The time at which a financial instrument (such as a bond, loan, or investment) becomes due for payment or expires.