BUSI 620 Week 4 Questions for Critical Thinking 4
(SOLUTIONS)
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Business 620
Critical Thinking Four
Salvatore’s Chapter 8:
a) Discussion Questions: 2 and 10.
b) Problems: 3, 11,12 and spreadsheet problem 1 (p. 357).
Salvatore’s Chapter 9:
a)
Problems: 7, 11, and spreadsheet problem 1.
Froeb et al.’s Chapter 9:
a) Individual problems: 9-2, 9-3 and 9-4.
Froeb et al.’s Chapter 11:
a) Individual problems: 11-4 and 11-5.
Discussion Question 2:
a) What is the distinction between marginal cost and
incremental cost?
b) How are sunk costs treated in managerial decision
making? Why?