Question 1
Suppose a company decided to automate a production line. Explain what effects this would have on a company's cost structure using CVP terminology. Could these changes have any possible negative effect on the firm?
Question 2
Answer the following questions using the information below:
Southwestern College is planning to hold a fund raising banquet at one of the local country clubs. It has two options for the banquet:
Southwestern College has budgeted $1,800 for administrative and marketing expenses. It plans to hire a band which will cost another $800. Tickets are expected to be $30 per person. Local business supporters will donate any other items required for the event.
Which option provides the least amount of risk?
◦ Option one
◦ Option two
◦ Both options provide the same amount of risk.
◦ It depends on how many donations it receives.
DNA is biological information
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