Ask Question
BusinessBusiness
11 October, 08:09

Based on the projected selling price of $20 per unit, the manufacturer invested a substantial portion of its available cash in a machine that could produce twenty-thousand gumballs in an hour. If consumers weren't willing to pay this much for gum, then the manufacturer faced significant:A) Financial risk. B) Promotion risk. C) Cost estimate risk. D) Market risk.

+4
Answers (2)
  1. 11 October, 10:11
    0
    The correct answer is letter "C": Cost estimate risk.

    Explanation:

    Cost estimate risk refers to all those factors that could affect the returns of a project because of not taking into consideration events that could affect the base costs of producing certain goods. Problems arising from the supply chain or consumer preference changes are examples of the risk of estimating costs.

    Firms must consider a loss margin at the moment of setting their prices so they make sure that their expenses are offset with their profits.
  2. 11 October, 10:17
    0
    Answer:D market risk
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Based on the projected selling price of $20 per unit, the manufacturer invested a substantial portion of its available cash in a machine ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
If an increase in income leads to an increase in the demand for a good, then the good is said to be:
Answers (1)
Suppose the economy is currently operating at potential output; an expansionary gap may be caused by each of the following except: a positive demand shock. a negative inflation shock. a decrease in taxes. an increase in the money supply.
Answers (1)
Bad Brads BBQ purchased a piece of equipment by paying $5,000 cash. They also incurred a shipping cost of $400 to get the equipment to its factory. The fair value of this equipment is $7,000.
Answers (1)
Television became a useful campaign tool in the election immediately following its introduction at the World's Fair in 1939. A. TrueB. False
Answers (1)
Linda sells 100 bottles of homemade ketchup for $10 each. The cost of the ingredients, the bottles, and the labels was $700. In addition, it took her 20 hours to make the ketchup and to do so she took time off from a job that paid her $20 per hour.
Answers (1)
New Questions in Business
Do you think we need to prioritize wants? why
Answers (1)
When the auditors discover an overstatement of accounts payable, they would most likely also expect to find an overstatement of:?
Answers (1)
This year Drake and his son purchased real estate for an investment. The price of the property was $1,200,000, and the title named Drake and his son as joint tenants with the right of survivorship.
Answers (1)
Than Wok emigrated from his war-torn country to the United States almost two years ago. He recently found a job working on an assembly line at a major computer manufacturer. Than left his friends and family behind when he came to the United States.
Answers (1)
Universal Electronics, Inc. (UEI), which started operations one year ago, has two divisions: Consumer and Commercial. Both divisions invest heavily in R&D, which is assumed to benefit five years. R&D spending is made uniformly throughout the year.
Answers (1)
Home » Business » Based on the projected selling price of $20 per unit, the manufacturer invested a substantial portion of its available cash in a machine that could produce twenty-thousand gumballs in an hour.
Sign Up Forgot Password?