Chang Industries Has 2,000 Tables That Cost $115 Each to Produce.Each

question 92

Multiple Choice

Chang Industries has 2,000 tables that cost $115 each to produce.Each table can be sold as is for $221 or finished with a stain or paint.The cost to add a finish to each table is $75.Finished tables can be sold for $310.Chang should:

• A)Finish the table for incremental cost of $190 per table.
• B)Sell the unfinished tables for profit of $195 per table.
• C)Finish the table for profit of $89 per table.
• D)Sell unfinished tables for $106 incremental revenue per table.
• E)Finish the table for profit of $14 per table.

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Definitions:

Foreign Firm

A company that is based, incorporated, or originates in a country different from the market it operates in or sells its products to.

Domestic Firm

A company that operates and conducts its business activities within its home country.

Legal Process

Involves the procedures and activities related to the law, including litigation, legal negotiation, and the enforcement of legal rights.

U.S. Exporters

Businesses or entities located in the United States that sell goods or services to buyers in other countries.