Cung IncHas Some Material That Originally Cost $68,400

question 111

Multiple Choice

Cung Inc.has some material that originally cost $68,400.The material has a scrap value of $30,100 as is,but if reworked at a cost of $1,400,it could be sold for $30,800.What would be the incremental effect on the company's overall profit of reworking and selling the material rather than selling it as is as scrap?

• A)-$69,100
• B)-$700
• C)$29,400
• D)-$39,000

Understand how the business planning process can assist in financial decision-making and forecasting.

Comprehend the impacts of financial planning decisions on a firm’s need for external financing.

Understand and apply the concept of direct and inverse proportionality in real-world scenarios.

Plot data points and interpret graphical representations of directly and inversely proportional relationships.

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Definitions:

Equitable Hourly Income

An approach towards income distribution where all individuals receive fair wages based on hours worked, ensuring equality.

Minimum Wage

The lowest legal wage that can be paid to most workers, set by law or statute, aimed at protecting the economic well-being of workers.

Fair Compensation

Adequate payment for work performed, ensuring workers receive equitable wages that reflect their contributions and living needs.

Riskiness of Jobs

The measure of the probability and severity of adverse effects (such as accidents or occupational diseases) associated with a job or profession.