A salesperson who sells commercial machinery to assembly companies that require large machines to make their car parts that they sell to automotive companies is talking to manufacturing company representatives who are interest in purchasing 5 large assembly machines. The machines sell for $10,000 each and are necessary for companies that make parts. The salesperson, Sam, tells the manufacturing company managers that the machines have a new high-speed motor that can make parts in half the rime. The management of American Manufacturing Company (AMC) feels this is very important and would help cut down on costs at the company. The management agrees to purchase 5 high-speed machines for a total of $50,000, Once the machines are delivered, the management realizes that the machines do not produce double the parts, and de not have the high-speed motors as the salesperson stated.

A salesperson who sells commercial machinery to assembly companies that require large machines to make their car parts that they sell to automotive companies is talking to manufacturing company representatives who are interest in purchasing 5 large assembly machines. The machines sell for $10,000 each and are necessary for companies that make parts. The salesperson, Sam, tells the manufacturing company managers that the machines have a new high-speed motor that can make parts in half the rime. The management of American Manufacturing Company (AMC) feels this is very important and would help cut down on costs at the company. The management agrees to purchase 5 high-speed machines for a total of $50,000, Once the machines are delivered, the management realizes that the machines do not produce double the parts, and de not have the high-speed motors as the salesperson stated.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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