Romulus Company Has 21,000 Units of Its Sole Product That

question 134

Essay

Romulus Company has 21,000 units of its sole product that it produced last year at a cost of $67 each.This year's model is superior to last year's and the 21,000 units cannot be sold for their regular selling price of $102 each.Romulus has two alternatives for these items: (1)they can be sold to a wholesaler for $38 each,or (2)they can be reworked at a total cost of $258,000 and then sold for $73 each.The company has enough idle capacity to rework these items without affecting any new production.Which choice would increase the company's profits the most?

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Definitions:

Shared Assumptions

Fundamental beliefs and understandings that are implicitly agreed upon by members of an organization or group, guiding their behavior and decision-making.

Organizational Culture

The collective values, beliefs, and behaviors that shape the social and psychological environment of a business organization.

Cultural Symbols

Objects, signs, or emblems that represent significant meanings or values within a specific culture.

Organizational Culture

A system of shared assumptions, values, and beliefs which governs how people behave in organizations.