Answer the Following Question(s)using the Information Below

question 33

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.
-The opportunity cost of holding significant inventory includes

• A)contribution margin on the extra inventory.
• B)additional insurance costs.
• C)additional storage costs.
• D)the cost of the inventory plus the added insurance and storage costs.
• E)the interest forgone on an alternative investment.

---

Definitions:

Absorption

The process by which one substance takes in or soaks up another; in biology, it often refers to how nutrients from food are taken into the body.

Sexual Feelings

Emotions and physiological sensations related to sexual attraction, desire, and activities, which are natural aspects of human sexuality.

Self-Serving Bias

A cognitive bias that involves attributing positive events to one's own character but attributing negative events to external factors, thereby protecting self-esteem.

Fundamental Attribution Error

The tendency to underestimate situational factors and overestimate personal characteristics when explaining others' behaviors.