Solve the Problem. -A Firm Is Considering a New Product. the Accounting Department

question 120

Multiple Choice

Solve the problem.
-A firm is considering a new product. The accounting department estimates that the total cost, C(x) , of producing x units will be C(x) = 95x + 3720. The sales department estimates that the revenue, R(x) , from selling x units will be R(x) = 105x, but that no more than 987 units can be sold at that price. Find and interpret (R -C) (987) .

• A) -$6150 loss, cost exceeds income
• B) $6150 profit, income exceeds cost It is not worth it to develop product. It is worth it to develop product.
• C) $201,120 profit, income exceeds cost
• D) $1359 profit, income exceeds cost It is worth it to develop product. It is worth it to develop product.

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Definitions:

Foot-In-The-Door Technique

A compliance strategy that involves getting a person to agree to a small request to increase the likelihood of agreeing to a larger request later.

Persuasion

The process by which a person's attitudes, beliefs, or behaviors are influenced by communications from others.

Large Request

A significant or demanding favor or inquiry that is beyond normal expectations and requires considerable effort to fulfill.

Poor Credentials

Refers to qualifications, certifications, or experiences that are considered inadequate or less respected within a professional context.