Product Z Sells for $18 Per Unit as Is, but If

question 71

Multiple Choice

Product Z sells for $18 per unit as is, but if enhanced it can be sold for $24 per unit. The enhancement process will cost $50,000 for 10,000 units. If the 10,000 units of Product Z are sold as is without further processing, the company:

• A) will incur an incremental profit of $10,000.
• B) will incur an opportunity cost of $10,000.
• C) will incur an incremental profit of $1 per unit.
• D)will incur an incremental loss of $6 per unit.

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Definitions:

Informational Social Influence

The process where individuals change their opinions or behavior in response to accessing new information or knowledge from others.

Group Standard

The norms and expectations that are established and shared by a group, guiding the behavior and attitudes of its members.

Social Approval

The favorable acknowledgment, approval, or support from people within a social setting.

Social Norms

Shared guidelines or rules that dictate expected behaviors within a society or group.