Acme Auto Repair Developed a New Diagnostic Testing Procedure That

question 121

Multiple Choice

Acme Auto Repair developed a new diagnostic testing procedure that is expected to increase sales by $10,000 per month.As more drivers bring in their vehicles,Acme expects to also do more oil changes and brake repairs.As a result,inventory levels of oil and brake parts must be increased by $5,000.Revenues from oil changes and brake jobs are expected to increase by $4,000 per month.An example of a synergistic effect from the new diagnostic testing procedure is the

• A) increase in inventory levels of oil and brake parts.
• B) increase in revenue of $10,000 per month for the diagnostic testing.
• C) increase in revenues from oil changes and brake jobs of $4,000 per month.
• D) increase in all activities totaling $19,000 per month.

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Definitions:

Social Responsibility Pyramid

A model describing the layers of responsibility that companies have, ranging from economic, legal, ethical, to philanthropic duties.

Obligation

A duty or commitment that one is bound to, legally or morally, which often involves completing certain actions or adhering to agreements.

Social Responsibility

The idea that businesses should balance profit-making activities with activities that benefit society; it involves developing businesses with a positive relationship to the society in which they operate.

Positive Impact

The beneficial effect that one's actions or policies have on individuals, communities, environments, or markets.