a.true
Because with said the the margin of safety is the amount that sales can drop before the company incurs a loss.
read the question aloud and it will make sense.
Answer:
Buy
Explanation:
First, we need to find out what is the cost incurred by the company in building the power station and after that, we will compare that cost with the selling price of the power from Tri-county G&T. the lower-priced option will be considered as best option.
Cost incurred by the company in building the power station = $10,000,000 + (150,000 x $35)
Cost incurred by the company in building the power station = $10,000,000 + $5,250,000
Cost incurred by the company in building the power station = $15,250,000
Selling price of the power from Tri-county G&T = 150,000 x $75
Selling price of the power from Tri-county G&T = 11,250,000
Decision: It would be a wise option for the company to buy it. From buying the power the company will save $4m.
Yes and just because yes they should
Answer:
Cake demand next year=1,267,498 units
Explanation:
Y=I+G
where;
Y=cake demand next year
I=initial demand
G=growth demand
Meaning;
Cake demand next year=Initial demand+growth demand
where;
Initial demand=1,207,141 units
growth demand=5% of initial demand
growth demand=(5/100)×1,207,141=60,357.05 units
replacing;
Cake demand next year=1,207,141+60,357.05=1,267,498.05
Cake demand next year=1,267,498.05 units rounded off to the nearest unit=1,267,498 units
