Hodge IncHas Some Material That Originally Cost $74,600

question 85

Multiple Choice

Hodge Inc.has some material that originally cost $74,600.The material has a scrap value of $57,400 as is,but if reworked at a cost of $1,500,it could be sold for $54,400.What would be the financial advantage (disadvantage) of reworking and selling the material rather than selling it as is as scrap?

• A) ($79,100)
• B) ($21,700)
• C) ($4,500)
• D) $52,900

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Definitions:

Product Invention Strategy

A business approach that focuses on creating new products or significantly improving existing ones to maintain competitive advantage.

Global Markets

The worldwide economic markets where goods, services, and financial assets are traded across different countries and territories.

Promotion Efforts

Actions and strategies employed by companies to increase awareness and sales of their products or services.

Communication Adaptation Strategy

This involves adjusting a company’s communication methods to better fit the cultural and social norms of different target markets.