Dominik Corporation Purchased a Machine 5 Years Ago for $527,000

question 46

Multiple Choice

Dominik Corporation purchased a machine 5 years ago for $527,000 when it launched product M08Y. Unfortunately, this machine has broken down and cannot be repaired. The machine could be replaced by a new model 310 machine costing $545,000 or by a new model 240 machine costing $450,000. Management has decided to buy the model 240 machine. It has less capacity than the model 310 machine, but its capacity is sufficient to continue making product M08Y. Management also considered, but rejected, the alternative of dropping product M08Y and not replacing the old machine. If that were done, the $450,000 invested in the new machine could instead have been invested in a project that would have returned a total of $532,000.
-In making the decision to buy the model 240 machine rather than the model 310 machine,the sunk cost was:

• A) $545,000
• B) $450,000
• C) $527,000
• D) $532,000

Comprehend the concept and significance of social smiling in infant development.

Grasp the developmental theories explaining aging and their implications.

Understand the relevance of facial expressions and emotional communication across all ages.

Recognize the influence of parental and environmental factors on adolescent mental health.

---

Definitions:

Compa-Ratio

An index that indicates how an individual’s or a group’s salary relates to the midpoint of their relevant pay grades.

Piecework

A type of incentive system that compensates workers for each unit of output.

Individual Incentive Plans

Compensation strategies designed to reward employees based on their individual performance and achievements.

Commissions

Earnings based on a percentage of the sales made by an employee or agent, as a form of incentive pay.