Gralyn Corp

question 90

Multiple Choice

Gralyn Corp. compares two products' margin of safety ratios (MOS%) . Product A has a ratio of 0.13 and product B has a ratio of 0.31. Everything else held constant, what should the managers at Gralyn Corp. do and why?

• A) They should choose Product A because it will cost less than half as much to produce.
• B) They should choose Product A because it is less risky and might require less management attention than Product B.
• C) They should choose Product B because it will produce more than double the profit of Product A.
• D) They should choose Product B because it is less risky and might require less management attention than Product A.

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Definitions:

Obsession

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PTSD

Post-Traumatic Stress Disorder, a mental health condition triggered by experiencing or witnessing a terrifying event.

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