Ted Was Shopping for a New Automobile

question 26

Essay

Ted was shopping for a new automobile. He found one that met his needs and agreed to purchase it for $23,000. He had shopped around and concluded that he could not get a better price from another dealer. After he had paid for the automobile, the dealer called to notify Ted that he was entitled to a manufacturer's rebate of $1,500. The next week he received a $1,500 check from the manufacturer. How much should Ted include in gross income?

---

Definitions:

Financial Resources

The available resources in the form of cash, liquid securities, and credit lines that a business can use for expenditure.

Kano Model

A theory for product development and customer satisfaction, which categorizes customer preferences into must-be, performance, and delighter attributes.

Customer Needs

The requirements and desires of consumers that they seek to fulfill when purchasing goods or services.

New Products

Items introduced to the market for the first time, offering innovation or improvements compared to existing offerings.