Product Z Sells for $18 Per Unit as Is, but If

question 71

Multiple Choice

Product Z sells for $18 per unit as is, but if enhanced it can be sold for $24 per unit. The enhancement process will cost $50,000 for 10,000 units. If the 10,000 units of Product Z are sold as is without further processing, the company:

• A) will incur an incremental profit of $10,000.
• B) will incur an opportunity cost of $10,000.
• C) will incur an incremental profit of $1 per unit.
• D)will incur an incremental loss of $6 per unit.

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Definitions:

Facial Feedback Hypothesis

The idea that one's facial expressions can directly affect their emotional experiences.

Suggestion

The psychological process by which a person guides the thoughts, feelings, or behavior of another.

Polygraphs

Instruments that measure physiological responses, such as heart rate and blood pressure, to determine if a person is lying.

Error Rate

The frequency or proportion of mistakes made over a specific period or within a given dataset.