If Demand for Product a Were Forecast at 1,000,000 Units

question 39

Short Answer

If demand for product A were forecast at 1,000,000 units for the coming year and your factory has trained labor and equipment sufficient to produce 150,000 units per month, is the capacity cushion positive or negative? ____________________

---

Definitions:

Interest

The cost of borrowing money or the earnings from lending money, calculated as a percentage of the principal amount.

Adjustment Interest

Adjustment Interest involves the modification of interest income or expense to correct or update the recorded interest in financial records.

Interest Expense

The cost incurred by an entity for borrowed funds, represented as an expense in the income statement.

Discount Period

A designated time frame during which a discount is applicable on a payment or transaction.