Heavy Duty Inc

question 58

Multiple Choice

Heavy Duty Inc. ,a manufacturer of power tools,decides to offer a rebate of $100 on its 16-inch mid-range chain saw,which currently has a retail price $470.Heavy Duty's marketers estimate that,as a result of the rebate,sales of this model will increase from 50,000 to 80,000 units next year.The profit margin for Heavy Duty before the rebate is $150.Based on the given information,is the decision to give the rebate a wise one?

• A)No,since costs are $5.0 million more than benefits.
• B)No,since costs are $3.5 million more than benefits.
• C)Yes,since the benefits are $0.2 million more than the costs.
• D)Yes,since the benefits are $1.5 million more than the costs.

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Definitions:

Vascular Tissue

Plant tissue responsible for the transport of water, nutrients, and sugars throughout the plant body, comprising principally of xylem and phloem.

Stomata

Tiny openings or pores in plant leaves and stems that allow for gas exchange, facilitating photosynthesis and transpiration.

Vascular Cambium

A layer of tissue in plants that is the source of new cells for growth in diameter of stems and roots.

Secondary Growth

This is the process in plants that results in the thickening of stems and roots, mainly due to the activity of the vascular cambium and cork cambium.