Seneca Company Has Invested $1,000,000 in a Plant to Make

question 3

Multiple Choice

Seneca Company has invested $1,000,000 in a plant to make gas pumps for service stations.The average long-run income desired from the plant is $150,000 annually.The annual cost base for each pump is $1,000.What should be the prospective selling price for each pump if the company uses a target return on investment as the markup base?

• A)$1,150
• B)$2,500
• C)$16,000
• D)$17,000
• E)$17,500

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Definitions:

Bystander-Calculus Model

In attending to an emergency, the bystander calculates the perceived costs and benefits of providing help compared with those associated with not helping.

Bystander Apathy

A phenomenon where individuals are less likely to offer help to a victim when other people are present.

Personal Costs

The sacrifices or losses endured by an individual as a consequence of making a decision or taking an action.

Prosocial Behaviour

Actions intended to benefit others, including helping, sharing, and caring activities that promote social harmony and well-being.