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Uni-Go Company Makes Motorized Unicycles

Question 68

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Uni-Go Company makes motorized unicycles. Uni-Go is deciding whether to include a safety feature that would cost $6 for each unicycle. Uni-Go estimates the probability of death without the safety feature is 1/90,000 and the death cost per unicycle is $5.55. Uni-Go's cost-benefit recommendation is to


A) add the safety device.
B) not add the safety device.
C) add the safety device plus additional safety devices.
D) not produce the unicycle.

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