Wasson Widget Has 1,000 Obsolete Widgets on Hand

question 71

Multiple Choice

Wasson Widget has 1,000 obsolete widgets on hand. These units were produced a year ago at a cost of $10,000. The units could be scrapped for $1,000 or reworked for $2,000 and sold for $5,000. Which alternative is desirable and why?

• A) Scrap, profit of $1,000 is higher than the other option
• B) Rework, incremental loss $7,000
• C) Rework, profit of $3,000 is higher than the other option
• D) Scrap, incremental loss $9,000

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Definitions:

Polypeptide Chain

A chain of amino acids linked by peptide bonds, which forms part of the structure of a protein.

Protein Precursor

An inactive form of a protein that requires chemical changes to become active; also known as a proprotein.

Functional Groups

Distinct clusters of atoms in molecules that dictate the unique chemical behaviors of those molecules.

Leucine Zipper Proteins

are a type of transcription factor protein characterized by a leucine zipper structure that facilitates DNA binding.