Southeast Wood Products, Inc reports sales of 20,000,000 and inventory of 4,000,000. Southeast's
inventory possesses significant economies of scale.
Therefore, if the firm's sales increase by 10,
Southeast's inventory will ________ and if Southeast's sales decrease by 10, Southeast's inventory
will ________.
A) decrease by more than 10; decrease by more than 10
B) increase by more than 10; decrease by less than 10
C) increase by less than 10; decrease by less than 10
D) increase by more than 10; increase by more than 10
Question 2
When solving for future value, we use the term compounding of cash flows rather than the term discounting of cash flows.
Indicate whether the statement is true or false.
Wood first appeared in plants called progymnosperms.
Tracheids in conifer wood.
Female Wood Duck at Crystal Springs Rhododendron Garden, Oregon, U.S.
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