A company inadvertently produced 3,000 defective products. The product cost $15 each to be manufactured and normally sells for $35 each. A salvage company will purchase the defective units as they are for $13 each. The production manager reports that the defects can be corrected for $5 per unit, enabling the company to sell them at a discounted price of $22.00. The repair operations would not affect other production operations. Prepare an analysis that shows which action should be taken.
What will be an ideal response?
Because there is an incremental income generated from repairing, they should be repaired.
You might also like to view...
________ highlight the fact that choosing among available options is not always a choice between right and wrong.
A. Ethical dilemmas B. Ill-conceived goals C. Management theories D. Organizational theories E. Ethical lapses
Porter’s forces of competition framework consists of how many forces?
a. three b. four c. five d. six
________ is the name given to the processes surrounding recognition of the principal-agent problem and ways to align agents with the interests of the principals
A) Principal theory B) Interested party theory C) Agency theory D) Compensation process theory
Part of a credo includes a list of lines you would never cross to be successful
Indicate whether the statement is true or false