The Draper Corporation Is Considering Dropping Its Doombug Toy Due

question 185

Multiple Choice

The Draper Corporation is considering dropping its Doombug toy due to continuing losses. Data on the toy for the past year follow:
If the toy were discontinued, Draper could avoid $8,000 per year in fixed costs. The remainder of the fixed costs are not avoidable.
-The annual financial advantage (disadvantage) for the company from discontinuing the production and sale of Doombugs would be:

• A) ($30,000)
• B) $10,000
• C) ($22,000)
• D) $18,000

Grasp the concept of brainstorming and other idea generation techniques in developing new products.

Understand reverse innovation and its impact on global product development.

Recognize the role of concept testing in evaluating new product ideas.

Learn the importance of licensing, R&D consortia, and collaborations in product development.

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Definitions:

Homeostasis

The process by which living organisms regulate their internal environment to maintain a stable, optimal condition despite changes in the external environment.

Equilibrium

A state of physical balance or a stable condition in which forces are balanced, often used in biological, chemical, and physical contexts.

Eupnea

Regular, healthy, effortless respiration.

External Acoustic Meatus

The external ear canal, a tube running from the outer ear to the middle ear.