Legendary Motors Has 7,000 Defective Autos on Hand Which Cost

question 22

Multiple Choice

Legendary Motors has 7,000 defective autos on hand which cost $12,880,000 to manufacture. Legendary can either sell these defective autos as scrap for $8,000 per auto, or spend an additional $18,320,000 on repairs and then sell them for $12,000 per unit. What is the net advantage to repair the autos?

• A) $84,000,000.
• B) $18,320,000.
• C) $9,680,000.
• D) $56,000,000.

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Definitions:

Circadian Rhythms

Biological processes that follow a roughly 24-hour cycle, regulating sleep, wakefulness, and numerous physiological functions in living organisms.

Delta Waves

Slow brain waves typically associated with the deepest stages of sleep and relaxation.

Delta Waves

Slow brain waves primarily associated with deep sleep and brain pathology.

Sleep Spindles

Bursts of oscillatory brain activity visible on an EEG that occur during stage 2 of sleep, thought to play a role in learning and memory.