Answer the Following Question(s)using the Information Below

question 41

Multiple Choice

Answer the following question(s) using the information below.Central Medical Supply Inc., a manufacturer of medical testing equipment, has $240,000 worth of an obsolete line of testing equipment.The obsolete equipment can be adapted to fit another line of testing equipment at a cost of $64,000; the market value would then be $136,000.However, Tripac offered to purchase the obsolete equipment as is for $88,000.
-Central Medical Supply Inc., a manufacturer of medical testing equipment, has $240,000 worth of an obsolete line of testing equipment.The obsolete equipment can be adapted to fit another line of testing equipment at a cost of $64,000; the market value would then be $136,000.However, Tripac offered to purchase the obsolete equipment as is for $88,000.What are the relevant figures above for management in their decision?

• A)($240,000 + $64,000); ($88,000 - 0)
• B)($240,000 + $64,000); ($88,000 - 240,000)
• C)($240,000 + $64,000); ($88,000 + 240,000)
• D)($136,000 - $64,000); ($88,000 - 0)
• E)($136,000 - $64,000); ($88,000 - 240,000)

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Definitions:

Notice Situation

The process of becoming aware of or recognizing a particular set of circumstances or conditions in one's environment.

Define

To explain the meaning of a word or concept.

Accept Responsibility

Recognizing and admitting one's role or involvement in a given situation, taking accountability for actions and their consequences.

Door-In-The-Face Technique

A compliance strategy that involves making a large request that is expected to be refused so that a smaller request will be accepted.