A company invested $400,000 in a technology that reduced the overall costs of production by reducing their cost per unit $1.85. Later, a manager has an opportunity to outsource production to another manager, you company at a cost per unit of $1.75. If you are the from $2 to should
a. consider the $400,000 as a sunk cost, not relevant to the decision.
b. should reduce his effort by ignoring any new developments and letting the production run as it is.
c. should ignore the $400,000 fixed cost.
d. Both A & C
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “A company invested $400,000 in a technology that reduced the overall costs of production by reducing their cost per unit $1.85. Later, a ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Tom buys a shirt for $22.00 plus 7% sales tax. His cousin buys a shirt for $18.00 plus 4% sales tax. How much do Tom and his cousin pay for the shirts? Show your work. Who spent more on tax?
Answers (1)
When a monopolist increases the amount of output that it produces and sells, the price of its output?
Answers (1)
When a partner leaves the company, the partnership is dissolved and a new partnership may be formed with the remaining partners. True / False.
Answers (2)
Ax that you pay when making a profit from selling a house is an example of:
Answers (1)
Refresh Inc.'s debt to Spring Water Company is past due. Spring brings a legal action against Refresh to collect the debt. Spring asks the court to order Tempo Bank, in which Refresh has an account, to pay a portion of the funds to Spring.
Answers (1)
New Questions in Business
An online medicaladvice company just completed an IPO with an investment bank on a firm-commitment basis. The firm issued 5 million shares of common stock, and the underwriting fees were $2.10 per share. The offering price was $27.90 per share.
Answers (1)
Which of the following is an example of how the principle of beneficence can be applied to a study employing human subjects? Ensuring that the selection of subjects includes people from all segments of the population.
Answers (1)
Match the following definitions with the correct term 1. Delocalization of food production and consumption connections 2. The process of learning culturally specific preferences passed from generation to generation 3.
Answers (1)
Adobe Systems Incorporated reported the following accounts and amounts (in millions) in its financial statements for the year ended November 30, 2013.
Answers (1)
A Trek Cycles manufactures and sells bicycles to retailers. The X-1 model sells for $500 and has per-unit variable costs of $300 associated with its production. The company has fixed expenses of $30,000 per month.
Answers (1)