C. Industry Description
Industry description should include information about the market, target customers, similar businesses, and future industry growth opportunities
Answer:
Production unit will be 556
So option (c) will be the correct option
Explanation:
We have given sales for cost for don = 505 units
Digby wants to have an extra 10% units on hand beyond their forecast
So reserve percentage = 10 % = 0.10
We have to find the total number of production unit
We know that production unit is given by
Production unit = Sales ( 1 + reserve percentage )
=
So option (c) will be the correct option
Answer:
D. Recognised $13.5 million gross profit on the project in 2021.
Explanation:
Firstly, we will begin by getting how much of the project has been completed
$35 million of the cost has been incurred and a further $83 million left
This means that the total cost would be;
= $35 + $83
= $118
If $35 million of the cost has been incurred, we can find out how far the project is using its proportionality .
= 35/118
= 0.297
= 29.7% of the project has been completed.
The above implies that we can apportion 29.7% of the contract price to 2021.
= 29.7% × $163 million
= $48.411 can be recognised as revenue
The cost till date is $35 and there were no costs in the previous year as this is the first year of the project.
Hence, the gross profit would be;
= $48.411 million - $35 million
= $13.5 million
Answer:
they will have to pay interest on the borrowed amount.
Explanation:
debt finance involves an ongoing interest expense that can negatively impact cash flow in tough times .