An Employee of Morgan Corporation Has Found Some Partially Completed

question 164

Essay

An employee of Morgan Corporation has found some partially completed units of Model X in a dusty corner of the warehouse. A job ticket attached to the units indicates that a total of $750 in manufacturing costs have been used to bring the materials to this point in the manufacturing process. The units can be sold in their current condition for $275 to a scrap metal dealer. If Morgan spends $250 to complete the units, they could be sold for $600.​
(a) What should Morgan do? Why?
(b) Identify the sunk cost, if any.

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Definitions:

Express Authority

The power granted intentionally to an agent by a principal, often in written form, to perform specific acts on the principal's behalf.

Words

Fundamental units of language, composed of one or more sounds or their written representation, that function as the principal carriers of meaning.

Actions

Legal proceedings taken by a party or parties in a dispute.

Past Dealings

Previous interactions or transactions between parties that can influence the interpretation or the nature of their current contractual obligations.