A Company Inadvertently Produced 6,000 Defective Portable Radios

question 125

Essay

A company inadvertently produced 6,000 defective portable radios. The radios cost $10 each to be manufactured. A salvage company will purchase the defective units as they are for $8 each. The production manager reports that the defects can be corrected for $4.50 per unit, enabling the company to sell them at the regular price of $15.00. The repair operations would not affect other production operations. Prepare an analysis that shows which action should be taken.

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Definitions:

Complementary Forces

Elements or factors that when combined, enhance each other's qualities or effectiveness in achieving a goal.

Psychological Bigness

The perception or representation of oneself or others as possessing significant influence, importance, or stature in psychological terms.

Alienation

A feeling of disconnection or estrangement from others or from society as a whole.

One-Way Communication

A form of communication where information flows from the sender to the receiver without any feedback or interaction from the latter.