Ahngram Corp

question 123

Multiple Choice

Ahngram Corp. has 1,000 defective units of a product that cost $3 per unit in direct costs and $6.50 per unit in indirect cost when produced last year. The units can be sold as scrap for $4 per unit or reworked at an additional cost of $2.50 and sold at full price of $12. The incremental net income (loss) from the choice of reworking the units, versus selling them as scrap, would be:

• A) $2,500 higher if the units are reworked.
• B) $5,500 higher if the units are reworked.
• C) $4,000 higher if the units are reworked.
• D) $2,500 lower if the units are reworked.
• E) $12,000 higher if the units are reworked.

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Definitions:

Nonverbal Cues

Communication signals expressed through body language, facial expressions, and other physical behaviors rather than words.

Brainwashed

A colloquial term for the process of coercively changing or manipulating someone's beliefs, attitudes, or behaviors, often in a negative context.

Perceived Risk

The potential negative outcome a consumer envisages before making a purchasing decision, influencing their behavior and choice.

Negative Antecedent State

A psychological or physical condition that exists before a particular behavior, leading to a reduction in consumer satisfaction or decision-making efficiency.