When Ahmed arrived at work on Monday, he noticed that several new employees had been hired. One of the new hires seemed to be talkative and without the benefit of walls, the sound really carried. Based on this behavior, Ahmed assumed that this new employee was also likely to be quite outgoing and probably ask a lot of questions. Ahmed reaching this conclusion is an example of .

Varto company has 9,400 units of its sole product in inventory that it produced last year at a cost of $23 each. this year’s model is superior to last year’s, and the 9,400 units cannot be sold at last year’s regular selling price of $42 each. varto has two alternatives for these items: (1) they can be sold to a wholesaler for $8 each, or (2) they can be reworked at a cost of $251,100 and then sold for $34 each. prepare an analysis to determine whether varto should sell the products as is or rework them and then sell them.