Answer the Following Questions Using the Information Below

question 135

Multiple Choice

Answer the following questions using the information below:
LaCrosse Products has a budget of $900,000 in 2015 for prevention costs. If it decides to automate a portion of its prevention activities, it will save $80,000 in variable costs. The new method will require $40,000 in training costs and $100,000 in annual equipment costs. Management is willing to adjust the budget for an amount up to the cost of the new equipment. The budgeted production level is 150,000 units.
Appraisal costs for the year are budgeted at $600,000. The new prevention procedures will save appraisal costs of $50,000. Internal failure costs average $15 per failed unit of finished goods. The internal failure rate is expected to be 3% of all completed items. The proposed changes will cut the internal failure rate by one-third. Internal failure units are destroyed. External failure costs average $54 per failed unit. The company's average external failures average 3% of units sold. The new proposal will reduce this rate by 50%. Assume all units produced are sold and there are no ending inventories.
-Management has offered to allow the prevention changes if all changes take place as anticipated and the amounts netted are less than the cost of the equipment.What is the net impact of all the changes created by the preventive changes?

• A) $140,000
• B) $(22,500)
• C) $(134,000)
• D) $(121,500)

Recognize the importance of shared goals and commonalities in negotiations.

Understand the role of perception and bias in conflict and negotiation.

Comprehend the psychological and procedural methods for gaining insight into the opponent's perspective.

Analyze the impact of emotional and interpersonal dynamics on negotiation outcomes.

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Definitions:

Interconnected System

A complex configuration in which components or entities are linked together so that each part affects or is affected by others.

Negatively Associated

Connected in such a way that one may adversely influence the perception of another.

Eccentric

Deviating from conventional or accepted usage or conduct, especially in odd or whimsical ways.

Conventional

Based on or in accordance with what is generally done or believed; traditional, not unusual or experimental.