-Use the Table Above

question 22

Multiple Choice

$$\begin{array} { | l | l | l | } \hline \text { Customer } & \begin{array} { l } \text { Product A } \\\text { Reservation Price }\end{array} & \begin{array} { l } \text { Product B } \\\text { Reservation Price }\end{array} \\\hline 1 & 1,000 & 200 \\\hline 2 & 800 & 400 \\\hline \text { Marginal Cost } & 500 & 100 \\\hline\end{array}$$
-Use the table above. If the firm does not bundle the products, what single price should the firm charge for product A to maximize profit?

• A)500
• B)800
• C)900
• D)1,000

Integrate non-quantitative factors such as intangible benefits and salvage value in the evaluation of capital budgeting projects.

Distinguish between different capital budgeting evaluation techniques and their application contexts.

Understand the concept of working capital management in project evaluation.

Apply depreciation methods in the computation of cash flows for capital budgeting.

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Definitions:

Managers

Individuals who plan, organize, direct, and control resources, including human, financial, and information, to achieve organizational goals.

Contingencies of Reinforcement

The conditions or situations that determine the consequences of a behavior, which can either encourage or discourage the recurrence of that behavior.

Reward

Something given in exchange for good behavior or achieved objectives, used as a form of motivation.

Employees

Individuals who are hired to perform specific duties or services for an employer in return for payment.