[The Following Information Applies to the Questions Displayed Below

question 84

Multiple Choice

[The following information applies to the questions displayed below.]
Fancy Furniture produced a batch of 2,000 coffee tables at a cost of $355,000.It was discovered that the entire batch was finished improperly.Fancy can sell the tables as seconds for $305,000 or spend an additional $315,000 to refinish them and sell them for $605,000.
-In deciding whether to rework the tables or sell them as is,management should:

• A)Compare the $305,000 proceeds from the sale of the tables as is,with the $355,000 cost of the tables.
• B)Compare the $605,000 possible revenue from refinished tables with the total cost of $355,000 plus $315,000 to refinish.
• C)Compare the $315,000 cost to refinish the tables with the incremental revenue of $300,000 if the tables are refinished.
• D)Eliminate any alternative that results in a loss on the sale of the product.

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Definitions:

Teratogen

Any agent capable of interfering with normal morphogenesis in an embryo, thereby causing malformations; examples include radiation, certain chemicals, and certain infectious agents.

Morphogenesis

The biological process that causes an organism to develop its shape and structure.

Neonate

Newborn individual.

Amniotic Fluid

The protective liquid contained within the amniotic sac that surrounds and cushions the fetus during pregnancy.