Assume the Company Has 50 Units Left Over from Last

question 15

Multiple Choice

Assume the company has 50 units left over from last year which have small defects and which will have to be sold at a reduced price as scrap.This would have no effect on the company's other sales.What cost is relevant as a guide for setting a minimum price on these defective units?

• A) $1.50 per unit.
• B) $3.50 per unit.
• C) $5.00 per unit.
• D) $6.50 per unit.

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Definitions:

Triceps

A muscle located at the back of the upper arm, responsible for extending the elbow.

Three Heads

typically refers to a muscle having three points of origin or attachments, such as the triceps brachii.

Single Insertion

When a muscle or tendon attaches to bone at one point or site.

Brachialgia

Pain in the arm, often deriving from nerve irritation or damage.