The answer is D
We need to rank the products to which product has a cheep cost in production and the hiest cost in parshassing.
Use the defferent between cost of pushasing and VC of production as below:
Produst A has VC 15 $ - purshase cost 21$ = 6 $ loss if purshasing
Procust B has 34$ - 42$= 8$ loss if purshsed
Product C is purshaing (given )
So synergy should make as much as it can from product B becouse it has the more loss if purshased.
Which is the all quantity needed 6000 q
And the remain capacity for product B .
Hope that helpe u.
Regards.
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Ahmed Hassan
Accountant
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Original Message:
Sent: 12-02-2022 12:21 AM
From: FARSHAD PANDIKKADAVIL
Subject: McQ Query.
I don't want CMA study groups So please don't send these type of mails.
Original Message:
Sent: 11/28/2022 2:20:00 PM
From: PRAGATI VERMA
Subject: McQ Query.
An example of a hedging approach to financing is a. increasing earnings by purchasing stock puts. b. matching assets with liabilities of the same maturity. c. financing building projects with accounts payable. d. using five-year bonds to finance inventory acquisition
Shouldn't Option 'A' be the right answer.
Option B is given as the right answer. Pls guide.