Transformation Motor Company Produces a Part That Is Used in the Manufacture

question 56

Essay

Transformation Motor Company produces a part that is used in the manufacture of one of its products.The unit manufacturing costs of this part,assuming a production level of 6,000 units,are as follows:

Alba Motors Company has offered to sell 6,000 units of the same part to Transformation for $17.50 per unit.Assuming the company has no other use for its facilities and that the fixed manufacturing costs are unavoidable,what should Transformation do?

---

Definitions:

Ethics

A branch of philosophy that deals with questions about morality, including the rightness and wrongness of actions, virtues and vices, and good and evil.

Aggression

Behavior that is intended to harm or injure another being who is motivated to avoid such treatment.

Nazi Germany

The period in Germany from 1933 to 1945 under the dictatorship of Adolf Hitler, marked by totalitarian rule and the mass extermination of Jews and other groups.

September 11

A date marking the terrorist attacks in 2001 on the United States, targeting the World Trade Center in New York City and the Pentagon, leading to significant loss of life and global political consequences.