Gordon Corporation Inadvertently Produced 10,000 Defective Digital Watches

question 73

Multiple Choice

Gordon Corporation inadvertently produced 10,000 defective digital watches. The watches cost $8 each to produce. A salvage company will purchase the defective units as they are for $3 each. Gordon's production manager reports that the defects can be corrected for $5 per unit, enabling them to be sold at their regular market price of $12.50. Gordon should:

• A) Sell the watches for $3 per unit.
• B) Correct the defects and sell the watches at the regular price.
• C) Scrap the watches.
• D) Sell 5,000 watches to the salvage company and repair the remainder.
• E) Sell the watches as they are because repairing them will cause their total cost to exceed their selling price.

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Definitions:

Probability

The measure of the likelihood that an event will occur.

Secondary Reinforcer

A stimulus that gains its reinforcing power through its association with a primary reinforcer, such as money being valued for what it can buy.

Gold Star

A symbol of praise or achievement, often used in educational settings to reward good performance or behavior.

Spelling Quiz

A test or assessment focused on the ability to correctly spell words, often used in educational settings to evaluate students' spelling proficiency.