Management of Sourwine Corporation Is Considering Whether to Purchase a New

question 54

Multiple Choice

Management of Sourwine Corporation is considering whether to purchase a new model 320 machine costing $389,000 or a new model 280 machine costing $318,000 to replace a machine that was purchased 6 years ago for $376,000. The old machine was used to make product C78P until it broke down last week. Unfortunately, the old machine cannot be repaired.
Management has decided to buy the new model 280 machine. It has less capacity than the new model 320 machine, but its capacity is sufficient to continue making product C78P.
Management also considered, but rejected, the alternative of simply dropping product C78P. If that were done, instead of investing $318,000 in the new machine, the money could be invested in a project that would return a total of $405,000.
-In making the decision to buy the model 280 machine rather than the model 320 machine, the differential cost was:

• A) $58,000
• B) $13,000
• C) $29,000
• D) $71,000

Appreciate the complexity and potential limitations of clinical interviews as assessment tools.

Recognize the application of specific assessment tools based on clinical orientation (e.g., cognitive-behavioral, psychodynamic).

Understand the application and relevance of projective tests in revealing unconscious aspects of personality.

Identify methods and orientations for assessing specific disorders or behavioral issues.

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Definitions:

Harvest The Hay

The process of cutting and gathering hay crops for storage and future use.

Nonperformance

A failure to act or fulfill a duty, obligation, or contractual agreement.

Revocation

In contract law, the withdrawal of an offer by an offeror. Unless an offer is irrevocable, it can be revoked at any time prior to acceptance without liability.

Premium Price

The higher price charged for a product or service that is perceived to have greater value compared to alternatives.