Markham Farms reports the following contribution margin income statement for the month of August. The company has the opportunity to purchase new machinery that will reduce its variable cost per unit by $1 but will increase fixed costs by 10%. MARKHAM FARMS Contribution Margin Income Statement Sales (1,400 Units @ $80 per unit) $112,000 Variable Costs (1,400 Units @ $20 28,000 per Unit) Contribution Margin $84,000 Fixed Cost 40,000 Net Income (Loss) $44,000 Prepare a projected contribution margin income statement for Markham Farm assuming it purchases the new equipment. Assume sales level remains unchanged. MARKHAM FARMS Contribution Margin Income Statement

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Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.