A manager invests 20,000 in equipment that would help the company reduce it's per unit costs from 15 to 12 . He expects the equipment to be in use for the next seven years. After two years, he realizes that if he outsourced the production, the unit cost would be 7 instead. At this point what should the senior manager do?
a. Charge the manager for the next five years of depreciation
b. Write off the equipment as sunk cost and allow for outsourcing since it is cheaper
c. Not allow for outsourcing since the equipment is good for another five years
d. None of the above
Question 2
A firm that acquires a substitute product can try to reduce inter-product cannibalization by
a. Doing nothing
b. Repositioning its product or the substitute so that they do not directly compete with each other
c. Pricing each product at the same level
d. Lowering the prices on both the products
Demonstrating the use of venipuncture equipment. Using a syringe to draw blood.
Urea (diesel exhaust fluid) injection is used to reduce NOx exhaust emissions. It is injected after ...
Portable tabletop equipment that provides support for recipients receiving massage.
How to reduce simple ratios
One of the best ways to reduce your chances of catching a cold
Sadie is going to see a movie and is taking her four kids. each movie ticket costs $15 and ...