Wenig Inc Has Some Material That Originally Cost $73,500

question 58

Multiple Choice

Wenig Inc. has some material that originally cost $73,500. The material has a scrap value of $45,600 as is, but if reworked at a cost of $6,600, it could be sold for $58,100. 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)decrease of $22,000
• B)decrease of $67,600
• C)increase of $51,500
• D)increase of $5,900

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Definitions:

Blocking

A technique used in experimental design to minimize the effects of variable confounding by grouping similar experimental units together and randomly assigning treatments within these blocks.

Incentive

A positive or negative environmental stimulus that motivates behavior.

Exam Scores

Numerical values that represent the performance of individuals on academic assessments.

Matched Pairs Design

A research design in which subjects are paired based on certain similarities, and each pair is treated differently to assess the effect of a variable.