Instruction 20.1: Use the Information to Answer Following Question(s)

question 37

Multiple Choice

Instruction 20.1:
Use the information to answer following question(s) .
Jackson Automotive Inc. of California agrees to sell specialized automotive parts to Hidatsi of Korea. Because the two companies have never done business with each other, Jackson requires a banker's acceptance as payment for the $1,000,000 order. The banker's acceptance carries a 1.4% commission per annum and payment is to be received in 6 months. If Jackson Inc. chooses to discount or sell the bankers acceptance to its bank, the discount rate is 1.00% per annum.
-Refer to Instruction 20.1. What is the total Jackson Automotive can expect to receive if the firm takes payment today?

• A) $993,000
• B) $995,000
• C) $988,000
• D) $996,000

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Definitions:

Target-oriented Quality

A strategic approach focusing on achieving specific, predefined quality goals to satisfy customer expectations and improve product or service performance.

Scatter Diagram

A graphical method used to display the relationship between two variables, typically to identify any correlation between them.

Work Shift

Scheduled periods of work for employees, often rotating among mornings, afternoons, and nights, to ensure continuous operation in industries such as healthcare, manufacturing, and service.

Service Quality

Refers to the evaluation of how well a delivered service matches the expectations of the customer.