1 answer

Thank you! 16) In 2005, company was operating at 75% capacity. Rounding down to the nearest...

Question:

16) In 2005, company was operating at 75% capacity. Rounding down to the nearest percent, what is the highest discount that t

thank you!

16) In 2005, company was operating at 75% capacity. Rounding down to the nearest percent, what is the highest discount that the company could offer without losing money on incremental sales? a) 25% b) 27% c) 33% d) 40%. e) 75%

Answers

Answer is option C

C. 33%

Full capacity = 100%

Highest discount rate = (100%/75%)-100% = 33.33% = 33%

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