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O a. Avoid the investment proposal as it will result in losses Ob. O b. Accept the investment proposal as it increases BEP O c. Reject the investment proposal as expenses has increased O d. Accept the investment proposal as it will increase profit

O a. Avoid the investment proposal as it will result in losses Ob. O b. Accept the investment proposal as it increases BEP O c. Reject the investment proposal as expenses has increased O d. Accept the investment proposal as it will increase profit

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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An electronic company is planning to make their washing machines in blue and pink to attract young customers. The company is trying to gain_. a. cost advantage b. market share C. production advantage O d. differentiation advantage
Transcribed Image Text:An electronic company is planning to make their washing machines in blue and pink to attract young customers. The company is trying to gain_. a. cost advantage b. market share C. production advantage O d. differentiation advantage
OMN Manufacturing sells study tables at a price of RM250 per unit. The variable production cost is RM100 per unit and fixed cost is RM4,500 per month. The business is considering to use premium materials that will increase the variable cost by RM50 per unit. This will help to increase sales from 35 units to 40 units per month. The business should O a. Avoid the investment proposal as it will result in losses O b. Accept the investment proposal as it increases BEP O c. Reject the investment proposal as expenses has increased O d. Accept the investment proposal as it will increase profit
Transcribed Image Text:OMN Manufacturing sells study tables at a price of RM250 per unit. The variable production cost is RM100 per unit and fixed cost is RM4,500 per month. The business is considering to use premium materials that will increase the variable cost by RM50 per unit. This will help to increase sales from 35 units to 40 units per month. The business should O a. Avoid the investment proposal as it will result in losses O b. Accept the investment proposal as it increases BEP O c. Reject the investment proposal as expenses has increased O d. Accept the investment proposal as it will increase profit
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