Max, IncCan Sell a Large Piece of Machinery for $90,000

question 22

Multiple Choice

Max, Inc.can sell a large piece of machinery for $90,000.The machinery originally cost $240,000 and has accumulated depreciation of $130,000.Max will have to pay a 5% sales commission on the sale.Rather than sell, Max is considering leasing the machine.It can be leased for 4 years for $24,000 per year.Max has estimated future operating expenses to be $3,000 per year, and Max will be responsible for those expenses.Which of the following options most accurately describes the analysis and decision for Max?

• A) Lease - because differential revenues are $6,000 if Max leases rather than sells
• B) Lease - because Max will lose $20,000 if it sells the equipment for less than its $110,000 book value
• C) Sell - because differential income of selling rather than leasing is $6,000
• D) Sell - because differential income is $1,500 if Max sells rather than leases

Understand the concept of self-stereotyping and its effects on individuals within minority groups.

Recognize how life course stages influence responses to controlling images within marginalized communities.

Identify and describe the significance of virtual spaces for marginalized groups in terms of self-definition and visibility to mainstream culture.

Grasp the political and social stances of youth movements such as the Taqwacore movement in rejecting mainstream racial categorizations and Western imperialism.

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Definitions:

Contingency Approach

A management theory that suggests the most appropriate style of management is dependent on the context of the situation.

Universal Process Approach

A management theory suggesting that certain principles of management apply to all organizations, advocating the use of standardized procedures and practices.

Theory X

A management concept that assumes employees are inherently lazy and will avoid work if they can, suggesting the need for strict supervision and control.

Self-direction

The ability to set a course or take action independently, often related to personal or professional goal setting and achievement.