Savannah Motors
Savannah Motors Is Trying to Decide Whether It $\text {\underline{ Old machine} }$

question 104

Multiple Choice

Savannah Motors
Savannah Motors is trying to decide whether it should keep its existing car washing machine or purchase a new one that has technological advantages (which translate into cost savings) over the existing machine.Information on each machine follows:
                                                                        $\text {\underline{ Old machine} }$    $\text {\underline{ New machine} }$
$\begin{array}{lll}\text { Original cost } & \$ 9,000 && \$ 20,000 \\\text { Accumulated depreciation } & 5,000 && 0 \\\text { Annual cash operating costs } & 9,000& & 4,000 \\\text { Current salvage value of old machine } & 2,000 & \\\text { Salvage value in } 10 \text { years } & 500 && 1,000 \\\text { Remaininglife } & 10 \text { yrs } &&10 yrs\end{array}$




Refer to Savannah Motors.The $4,000 of annual operating costs that are common to both the old and the new machine are an example of a(n)

• A)sunk cost.
• B)irrelevant cost.
• C)future avoidable cost.
• D)opportunity cost.

Understand how effective conflict resolution can contribute to organizational performance and individual well-being.

Recognize the significance of managing emotional aspects of conflicts.

Analyze the implications of poorly set objectives and poorly designed reward systems on conflict.

Appreciate the importance of addressing the underlying causes of conflicts to prevent future occurrences.

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Definitions:

Reproductive Age Span

is the period in the life of an organism during which it is biologically capable of producing offspring.

Viable Population

A population size capable of maintaining or increasing its numbers over time, ensuring long-term survival and genetic diversity.

Population Dispersion

The pattern of spacing among individuals within a geographic area, which can be uniform, random, or clumped.

Whooping Crane

A large North American bird species, noted for its white plumage and loud, whooping calls, currently endangered.