Chang Industries Has 2,000 Defective Units of Product That Have

question 49

Multiple Choice

Chang Industries has 2,000 defective units of product that have already cost $14 each to produce. A salvage company will purchase the defective units as they are for $5 each. Chang's production manager reports that the defects can be corrected for $6 per unit, enabling them to be sold at their regular market price of $21. Chang should:

• A) Throw the units away.
• B) Sell the units to the salvage company for $5 per unit.
• C) Sell the units as they are because repairing them will cause their total cost to exceed their selling price.
• D) Sell 1,000 units to the salvage company and repair the remainder.
• E) Correct the defects and sell the units at the regular price.

Recognize the trait approach to leadership and its contemporary relevance.

Understand the intuitive appeal of the trait approach and its significance in leadership identification.

Acknowledge the major criticisms and limitations of the trait approach.

Understand the foundational concepts and historical development of leadership trait theory.

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Definitions:

Cost Of Goods Purchased

The total expense incurred by a company to buy the goods it has purchased for resale, including shipping and handling fees.

Profit Margin

A financial metric indicating the percentage of revenue that exceeds the cost of goods sold, highlighting the efficiency of a company in managing its operations and costs.

Operating Expenses

Costs incurred during the normal operations of a business, excluding the cost of goods sold.

Sales

The transactions involving the exchange of goods or services for money, constituting the primary revenue source for most businesses.