Solved

A Company Decides to Close Down Its Plastics Division

Question 46

Multiple Choice

A company decides to close down its plastics division. It has on hand 20 tonnes of styrene monomer, a raw material that has a market price of $700 per tonne, which had been originally purchased at $650 per tonne. Given that the company has no use for the styrene monomer, and that it would cost the company $5 000 to store it, what is the value of the 20 tonnes of styrene monomer to the company?


A) $14 000
B) $13 000
C) $0
D) -$5 000

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q41: Which of the following statements is FALSE?<br>A)Finding

Q42: Consider the following timeline: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB3082/.jpg" alt="Consider

Q43: A firm has contracted to supply 500

Q44: In a trade with the government of

Q45: To enable costs and benefits to be

Q47: Which of the following statements is FALSE?<br>A)A

Q48: Which of the following statements regarding the

Q49: You have a used CD store. At

Q50: What is the present value (PV)of $280

Q51: What is the future value (FV)of $20