Carmen Co Can Further Process Product J to Produce Product D

question 61

Multiple Choice

Carmen Co. can further process Product J to produce Product D. Product J is currently selling for $20 per pound and costs $15.75 per pound to produce. Product D would sell for $38 per pound and would require an additional cost of $8.55 per pound to produce.
What is the differential cost of producing Product D?

• A) $6.50 per pound
• B) $8.55 per pound
• C) $17.00 per pound
• D) $5.25 per pound

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Definitions:

Foot-In-The-Door Phenomenon

The tendency for people to agree to a large request after first agreeing to a small one.

Cognitive Dissonance

The psychological discomfort experienced when holding two or more conflicting beliefs, values, or attitudes.

Fundamental Attribution Error

A cognitive bias that involves overemphasizing personality traits and underestimating situational factors when explaining other people's behavior.

Central Route Persuasion

A method of persuasion that involves deeply processing the content of the message, evaluating the arguments presented and leading to lasting attitude change.