Management of Plascencia Corporation is considering whether to purchase a new model 370 machine costing $360,000 or a new model 220 machine costing $340,000 to replace a machine that was purchased 7 years ago for $348,000. The old machine was used to make product I43L until it broke down last week. Unfortunately, the old machine cannot be repaired.Management has decided to buy the new model 220 machine. It has less capacity than the new model 370 machine, but its capacity is sufficient to continue making product I43L.Management also considered, but rejected, the alternative of simply dropping product I43L. If that were done, instead of investing $340,000 in the new machine, the money could be invested in a project that would return a total of $411,000. In making the decision to buy the
model 220 machine rather than the model 370 machine, the sunk cost was:
A. $340,000
B. $348,000
C. $360,000
D. $411,000
Answer: B
You might also like to view...
Brand equity is equal to ________
A) total brand assets minus total brand liabilities B) total brand assets divided by total brand liabilities C) total company assets minus total company liabilities D) total company assets divided by total company liabilities E) total company liabilities minus total brand liabilities
The CEO suggests that Victor attend a training program for sales managers. If the program is like most others, which of the following topics will most likely be covered?
A) motivating salespeople B) forecasting short-term sales C) managing sales territories D) handling office politics E) calculating ROI
Most managers in a corporation are capable of being successful corporate entrepreneurs with the correct training.
Answer the following statement true (T) or false (F)
Jaylen, Tony's sales manager, points out to him that his last shopper in the housewares department didn't seem interested or involved as he explained the new food processor to her. Jaylen suggests that Tony use a(n) ____ as part of his presentation next time.
A. video B. information pamphlet C. demonstration D. trial close E. overcoming objections approach