The buying center at Peoria Cabinetworks is not able to reach a consensus on a purchase decision.The production manager wants to spend $18,000 to buy a new laminating machine,while the operations manager wishes to use that money to build an extension on its loading dock.The salesperson selling the laminating machine must realize that buyers should look at all _____ before making any major investments.

Question

Quizplus · Accepted Answer

The salesperson should advise the buyers to consider all the opportunity costs before making any major investment. Opportunity cost is the cost of the opportunity forgone in making a certain investment decision. In this case, the company needs to weigh the cost of purchasing the laminating machine against the cost of building an extension on the loading dock to determine which investment will provide the best returns.

The Buying Center at Peoria Cabinetworks Is Not Able to Reach