A Company Decides to Close Down Its Plastics Division

question 46

Multiple Choice

A company decides to close down its plastics division. It has on hand 20 tonnes of styrene monomer, a raw material that has a market price of $700 per tonne, which had been originally purchased at $650 per tonne. Given that the company has no use for the styrene monomer, and that it would cost the company $5 000 to store it, what is the value of the 20 tonnes of styrene monomer to the company?

• A)$14 000
• B)$13 000
• C)$0
• D)-$5 000

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Definitions:

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True-Experimental Design

True-experimental design is a type of experimental research methodology that involves the manipulation of variables, control of extraneous variables through random assignment, and the comparison between a control group and one or more experimental groups to determine causal relationships.

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