In the capital budgeting decision to purchase new software, the monthly rent for the office space is a sunk cost and the consultant's fee is a sunk cost.
What are sunk costs?An investment that has already been made but cannot be recouped is referred to as a sunk cost, also known as a retroactive cost. Sunk costs in company include things like marketing, research, installing new software or equipment, paying for workers and benefits, or paying for facilities.A sunk cost is a cost that has already been incurred and cannot be recovered in economics and corporate decision-making. Sunk costs and prospective costs—future expenses that may be avoided if action is taken—are compared.Salaries, insurance, rent, nonrefundable deposits, and repairs are a few examples of buried expenses (as long as each of those items is not recoverable).Costs that have already been incurred and cannot be avoided, no matter what a manager decides to do are known as "sunk costs."Learn more about sunk costs refer to :
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Where do deleted files go?
into the My Computer folder
into the My Documents folder
into the Recycle Bin
into the system tray
Answer:
the correct answer is into the recycle bin
Explanation:
Answer:
b
Explanation:
The US Senate overwhelmingly passed the 2022 Defense Authorization Act. The $768 billion "Defense Authorization Act" not only exceeds the defense spending proposed by the Biden administration by $25 billion, but also increases the US defense budget by about 5% compared to last year.
The US Senate passed the 2022 Defense Authorization Act, a $768 billion bill that surpasses the Biden administration's defense spending proposal by $25 billion and represents a 5% increase in the US defense budget compared to the previous year.
1. The US Senate passed the 2022 Defense Authorization Act.
2. The Defense Authorization Act is a bill that determines the budget and expenditures for the US defense sector.
3. The total amount allocated for the Defense Authorization Act is $768 billion.
4. The defense spending proposed by the Biden administration was exceeded by $25 billion in this Act.
5. The Act represents a 5% increase in the US defense budget when compared to the previous year.
6. This increase in the defense budget indicates a commitment to strengthening the country's defense capabilities.
7. The Act was passed overwhelmingly, indicating strong support from the Senate.
8. The Defense Authorization Act is an essential piece of legislation that ensures the funding and resources necessary for the US military to carry out its operations effectively.
9. The Act covers various aspects of defense spending, including military personnel, equipment, research and development, and strategic initiatives.
10. By passing the Defense Authorization Act, the US Senate has demonstrated its commitment to national security and defense preparedness.
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Based on this chart, what is the marginal revenue, in dollars, at quantity three jackets?
Based on the information, the Marginal revenue at quantity 3 will be $16.
How to calculate the valueThe marginal revenue at quantity three jackets is $16. This can be found by looking at the difference between the revenue generated by selling three jackets and the revenue generated by selling two jackets. The revenue generated by selling three jackets is $48, and the revenue generated by selling two jackets is $32. The difference between these two values is $16, which is the marginal revenue at quantity three jackets.
Here is a breakdown of the calculations:
Revenue generated by selling 3 jackets = $48
Revenue generated by selling 2 jackets = $32
Marginal revenue at quantity 3 = $48 - $32 = $16
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Create a business memo to HR director regarding the following: Describe the problems with the company’s hiring practices and the laws that have been violated. Provide one example and evidence to support the problems and the laws that have been violated. Explain how the firm can increase employee diversity
The business memo is expected to have the following: address of the sender with designation and date, the address of the HR Director with company name, title or subject of the memo, salutation, body, conclusion, complementary close, your name and contact.
What should be the format of the content of the memo?The content of the memo is expected to be in the following format:
Sender: [Your Name]
[Your Position]
[Date]
HR: [HR Director's Name]
[Company Name]
[Company Address]
Subject: Problems with Hiring Practices and Violations of Employment Laws
Salutation: Dear [HR Director's Name],
Body: I hope this memo finds you well. I am writing to bring to your attention some significant concerns regarding our company's hiring practices, specifically related to potential violations of employment laws. It is crucial that we address these issues promptly to ensure legal compliance and promote a fair and diverse work environment.
Problem Description: Our hiring practices have been observed to contain elements that may infringe upon existing employment laws. The following example illustrates one such instance:
Example: In a recent job opening for a senior management position, several qualified candidates from underrepresented groups were overlooked in favor of less qualified individuals from dominant groups. This discrepancy raises concerns about potential violations of anti-discrimination laws, such as the Equal Employment Opportunity Commission (EEOC) guidelines.
Evidence of the Problem and Violations: 1. Job Application Records: Careful analysis of the job application records reveals that a significant number of candidates from underrepresented groups, possessing the required qualifications and experience, were not selected for interviews or job offers. This evidence suggests a potential bias in our selection process, which could be in violation of Title VII of the Civil Rights Act of 1964, as well as other relevant federal and state laws.
Recommendations for Increasing Employee Diversity: To address these concerns and enhance employee diversity, I propose the following measures:
1. Review and Revise Hiring Policies: Conduct a comprehensive review of our hiring policies and procedures to ensure compliance with all applicable employment laws and regulations. Pay particular attention to practices that may introduce bias or hinder the recruitment of a diverse talent pool.
2. Training Programs: Implement mandatory diversity and inclusion training programs for all hiring managers and members of the interview panel. These programs should provide insights into unconscious biases, promote inclusive decision-making, and educate employees about the importance of diversity in the workplace.
3. Diverse Sourcing Strategies: Expand our recruitment efforts to attract a wider range of candidates. Collaborate with organizations, job boards, and educational institutions that focus on fostering diversity and inclusion. Proactively seek out potential candidates from underrepresented groups to create a more diverse applicant pool.
4. Diversity Metrics and Reporting: Establish clear diversity metrics and regularly monitor and report progress in achieving diversity goals. This approach ensures accountability and allows us to identify areas for improvement and take corrective actions as needed.
5. Employee Resource Groups: Encourage the formation of employee resource groups (ERGs) that focus on diversity and inclusion. ERGs provide a platform for employees to share experiences, support each other, and contribute to initiatives aimed at fostering a more inclusive workplace culture.
By implementing these recommendations, we can create a more equitable and diverse workforce that not only complies with employment laws but also brings a range of perspectives and experiences to drive innovation and success.
I request your support and guidance in addressing these concerns effectively. Please let me know if you would like to discuss this matter further or if you have any additional insights to contribute. I believe that by working together, we can make significant strides toward creating a more inclusive and diverse workplace.
Thank you for your attention to this matter.
Closing: Sincerely,
[Your Name]
[Your Position]
[Contact Information]
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John is a buyer for Sarah's Health Food Store. While his is in California buying tofu, he finds a solar car for sale for just $3000. John contracts to buy the car for Sarah, who has been looking for a solar car for the past 3 years. Sarah instructs the seller of he car to ship it. Under these circumstances: a. Sarah has ratified the contract b. Sarah is not liable on the contract c. John is liable on the conract d. none of the above
Sarah instructs the seller of he car to ship it, Sarah is not liable on the contract
How does a principal become liable to third parties on contracts?Generally speaking, the principal is responsible for any contracts formed; the agent is not. However, the agent will be held responsible if he is not fully or accurately disclosed, if the agent acts outside of his or her scope of authority, or, of course, if the agent entered into the agreement in his or her own capacity.If an agent operates within the scope of express, implied, urgent, or seeming authorization, the principal is accountable to third parties for the contracts the agent makes.Literally speaking, it means that the superior speaks for the inferior. Your attorney will construct a case to demonstrate that both the employee/agent—the one who caused the harm—and the employer/principal—the one in control of the agent—should be held accountable in vicarious liability instances involving respondent superior.To learn more about respondent superior refer,
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When happens when demand exceeds supply?
A shortage occurs when demand exceeds supply – in other words, when the price is too low. However, shortages tend to drive up the price, because consumers compete to purchase the product. As a result, businesses may hold back supply to stimulate demand.
spending consists of expenditures on new plants, capital equipment, machinery, and inventories.
Answer: investment
Explanation:
Investment spending refers to the spending that's made by an economic agent when a capital good is bought which will be used in producing further goods.
For example, the expenditures on new plants, capital equipment, machinery, and inventories isn't meant for immediate consumption but in order to help create further goods in the economy. Hence they are an investment expenditure.
Answer: insulations
Explanation:
definition of trading partner?
Answer:
A training partner is the relationship between you and a distributor or provider.
Explanation:
I hope this helps!!
Which of the following is not a related party transaction? a) Acme Corporation leases office space to Norton Company. Mr. and Mrs. Norton own Norton Company and 65% of Acme Corporation's stock. b) BBD Inc. licenses a patent from Nugo Inc., which owns 82% of BBD's outstanding stock. c) Beth Teal pays $15,000 a year to her gardener, Ben. Beth is Ben's grandmother. d) All the transactions are between related parties.
Answer:
c) Beth Teal pays $15,000 a year to her gardener, Ben. Beth is Ben's grandmother.
Explanation:
A related party transaction is any business transaction that takes place between entities that share some type of common interest, e.g. a parent company leasing a factory to one of its subsidiaries. They are legal, but the potential for conflicts of interest exist. Following the example, if the lease price is higher than fair market price, then the transaction could be considered fraudulent. The SEC requires that publicly traded corporations disclose all related party transactions.
A guest dropped off his laundry to hotel. It was not returned by that evening. He has early morning meetings and is upset he will have no shirt. What do you do
The hotel should promptly address the guest's concern and find a solution to provide him with a shirt for his early morning meetings.
How can the hotel address a guest's missing laundry?The hotel staff should immediately apologize for the inconvenience caused and assure the guest that they will resolve the situation. They can offer a few options to address the guest's immediate need for a shirt, such as providing a temporary replacement from the hotel's stock .
They should communicate with the laundry service provider to track down the missing laundry and expedite its return to the guest as soon as possible. Clear and effective communication with the guest throughout the process is essential to ensure their satisfaction and minimize any inconvenience caused.
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Stanley receives his degree from OCC. Stanley leaves his job at Trump Organization, paying him $100,000 a year. Stanley uses his life saving of $250,000 that he had deposited at Wells Fargo at an annual rate of 5% to start his own clean-energy company. Stanley’s first year revenue and expenses are as follow, Rent $23,000 Salary 57,000 Utility 22,000 Others 13,000 _________ Total 115,000 _________ Revenue for the year $180,000 11. Stanley’s explicit costs for the year is Group of answer choices $215,000 $112,500 $180,000 $216,250 $115,000
Stanley’s explicit costs for the year is $115,000.
Using this formula
Explicit costs=Rent+ Salary+ Utility+ Others
Where:
Rent=$23,000
Salary=$57,000
Utility=$22,000
Others=$13,000
Let plug in the formula
Explicit costs= $23,000+$57,000+$22,000+$13,000
Explicit costs=$115,000
Inconclusion Stanley’s explicit costs for the year is $115,000.
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reflection about simulation in second day and third day
Simulation is the process of imitating the operations of a real-world system or process over time. It is usually used to analyze the behavior of complex systems and can provide useful insight into how the system will behave under different circumstances.
The second and third days of the simulation were quite interesting. During this time, we were able to put into practice some of the concepts we had learned during the previous days of the simulation. We were able to work as a team and coordinate our efforts to achieve the desired outcome.
One of the things I noticed during this time was how important communication is when working in a team. It is vital to be able to communicate effectively with other team members to ensure that everyone is on the same page and that the project is progressing smoothly.
We were able to learn from our mistakes and adjust our strategies accordingly. This was a valuable experience as it helped us to develop our problem-solving skills and taught us how to be adaptable and flexible in the face of changing circumstances.
Overall, I found the second and third days of the simulation to be a great learning experience. It provided us with an opportunity to put into practice the skills and concepts we had learned during the first day of the simulation. We were able to work collaboratively as a team and learn from each other's strengths and weaknesses. I believe that the simulation has helped me to become a better problem solver and a more effective team player.
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impact of new vendor with zero opening balance
The impact of the vendor with the zero opening balance is to show that the account has been correctly set up.
What is the vendor opening balance?This is the term that is used to refer to the amount of money that is in an account at the particular time that the account is newly opened.
The way that the vendor balance can be gotten is when the opening balances that are in a new year are carried forwards and the customers are done. In order to track this, the code that is to be used is F. 07.
The opening balance is what would have to be brought forward at the end of an accounting period and it is usually what the vendor would have to use as they try to keep a track of the cash flow that is in their account.
Hence we would say that the impact of the new vendor with this balance that is 0 is to help to determine how correct the set up of the account has been done.
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Please post about a time when your attitude made a positive difference.
Developing a positive mindset at work can help you achieve success. It has happened for me several times in my career.
One of the instances I'd like to tell is when I was vying for the position of manager in my workplace as an employee.
In a telecom company, I managed the sales department. I had been working there for 7 years with no success; three of the employees put in less time than I did yet managed to get the top position. I was demotivated by the thought that perhaps there is something I am not doing correctly when I repeatedly lost the post to them. Even though my sales figures were strong, luck evaded me in some way.
Since there had been no advancement, it had been ten years. Nonetheless, I never wavered from my commitment to keep trying. I consistently adhered to the fundamentals and worked to become a better seller. My sales started to rise considerably.
Ultimately, the figures were significant enough to turn the proper heads. Finally, I received a promotion, but guess what? It was to the position of Area Retail Head, which is much more important than Manager. While it took ten years, I am still happy with my accomplishments. It's still as delicious as it was before.
Therefore, being positive in all those years, not looking back or getting discouraged paid dividends and made a huge difference in my life.
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I am better at my job than most of the other people who have the same job title agree or disagree
Disagreed. You cannot say that you are better at your job than others who have the same job title.
How to answer questionnaire questions?While providing the answer to a questionnaire, it is very important that a person would try to be as truthful as possible.
The reason they have to be truthful is so that they would be able to give the best answer that would be useful for the research.
In a question like this, I used disagreed because it is not possible that you have met all of the persons that have the same job description as you do.
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Explain the role of emotional intelligence?
Emotional intelligence refers to the ability to recognize, understand, and manage one's own emotions and the emotions of others. It involves skills such as empathy, self-awareness, and social awareness, which are important for building relationships, making decisions, and achieving goals. Emotional intelligence can help individuals communicate effectively, resolve conflicts, and adapt to change. It is particularly important for leaders and managers, as it can improve their ability to lead and motivate others.
The summer season is approaching, and
soon consumers will be heading to stores to
update their winter wardrobes (winter
clothes).
Answer:
what is the question
Explanation:
_____is a set of laws about the way a business should behave.
A)Business ethics
B)Company constitution
C)Ethics
D)The Better Business Bureau
FIVE
Your company’s Chief Finance Officer (CFO) recently read about the notion that adjusting the capital
structure can increase the market value of a firm drastically. The CFO liked this idea and has asked you
to do a preliminary study on this issue; he will entertain any proposal to increase the debt of the company
up to a maximum debt /equity (D/E) ratio of 30 percent.
Your company is currently very conservative with its leverage and has a D/E ratio of only 10 percent.
You estimate the beta of your stock to be 1.05, based on the last five’s data. The marginal tax rate is 30
percent. The long –term Treasury bond rate is 8 percent and market risk premium is 5 percent.
From an investment banker, you obtain the approximate relationship between the pre-tax cost of debt and
the D/E ratio as follows
% in x 125 100 75 50 25 0 -25
% in y -25 0 25 50 75 100 125
Page 6 of 6
In addition from the statement of changes in cash flows, you found that Earnings before Interest and Tax
to be Sh. 120 Million, depreciation to be Sh. 10.5 million, Capital Spending to be Sh. 15 million and the
net working capital is zero. The growth rate on future cash flows is estimated to be constant at 6 percent
p.a.
Required
(i) What is the total market value of the firm today when D/E is 10 percent
(ii) What D/E ratio would you advise the firm
1. The total market value of the firm today when D/E is 10 percent is 492.15 million. 2. we would advise the firm to increase its D/E ratio to 30 percent to maximize its market value.
1. To calculate the total market value of the firm today, we can use the following formula:
Total Market Value = Equity Value + Debt Value
Equity Value = Earnings before Interest and Tax (EBIT) * (1 - Tax Rate) / Cost of Equity
Debt Value = Debt * Cost of Debt
Cost of Equity = Risk-Free Rate + Beta * Market Risk Premium
Cost of Debt can be estimated using the relationship provided in the question. When D/E ratio is 10 percent, the cost of debt is 10 percent.
Plugging in the values, we get:
Equity Value = 120 * (1 - 0.3) / (0.08 + 1.05 * 0.05) = 430.63 million
Debt Value = 0.1 * 430.63 / (1 - 0.3) = 61.52 million
Total Market Value = 430.63 + 61.52 = 492.15 million
(ii) To advise the firm on the optimal D/E ratio, we can use the formula for the weighted average cost of capital (WACC):
WACC = Weight of Equity * Cost of Equity + Weight of Debt * Cost of Debt * (1 - Tax Rate)
To maximize the firm's market value, we need to find the D/E ratio that minimizes the WACC.
We can use the provided relationship between the pre-tax cost of debt and the D/E ratio to estimate the cost of debt for different D/E ratios. We can then calculate the WACC for each D/E ratio using the formula above.
Plotting the estimated cost of debt and WACC against the D/E ratio, we can see that the minimum WACC occurs at a D/E ratio of 30 percent.
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how many board of directors members does apple have?
Answer:
seven members
Explanation:
Answer:
At seven, Apple Inc. (NASDAQ: AAPL) has a relatively small number of directors for a huge public company. The board is particularly stable, too. Besides CEO Tim Cook, four other directors have been members since before Steve Jobs died in October 2011.
Explanation:
The difference between public sector and private is that public sector usually have the purpose of protecting the good of the public. private sector on the other hand is owned by private individuals instead of the government.
The difference between the public sector and the private sector is that the private sector is owned by private individuals while the public is owned by the government on behalf of the people so this is TRUE.
How are the public and private sector different?The public sector refers to industries and companies that are owned by the government of a nation on behalf of the people of that nation. This is to ensure that the public good is protected.
The private sector on the other hand is owned by private individuals who act in such a way that they make profits and take those profits instead of the nation.
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Tristen Company purchased a five-story office building on January 1, 2019, at a cost of $5,000,000. The building has a residual value of $200,000 and a 30-year life. The straight-line depreciation method is used. On June 30, 2021, construction of a sixth floor was completed at a cost of $1,650,000.
Required:
Calculate the depreciation on the building and building addition for 2018 and 2019 assuming that the addition did not change the life or residual value of the building.
Answer:
Depreciation expense on Building
Depreciation expense per annum under straight line method = (Cost - Residual value) / Useful life
= ($5,000,000 - $200,000) / 30
= $4,800,000 / 30
= $160,000
Depreciation expense for 2018 = $160,000
Depreciation expense for 2019 = $160,000
Depreciation expense on Building addition
Useful life = 30.00 years - 2.50 years = 27.50 years
Depreciation expense per annum under straight line method = (Cost - Residual value) / Useful life
= ($1,650,000 - $0) / 27.50
= $60,000
Depreciation expense for 2018 for 6 months = $60,000 * (6/12) = $30,000
Depreciation expense for 2019 = $60,000
Cape Corp. will pay a dividend of $3.90 next year. The company has stated that it will maintain a constant growth rate of 4.75 percent a year forever. a. If you want a return of 16 percent, how much will you pay for the stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. If you want a return of 9 percent, how much will you pay for the stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
A. you would pay $76.32 for the stock if you want a return of 16%. and you would pay $132.63 for the stock if you want a return of 9%.
What is stock?Stock is a type of security that represents ownership in a company. It is bought and sold on stock exchanges, providing investors with a way to invest in and own a portion of a company. When an investor buys stock in a company, they become a shareholder and are entitled to a portion of the company’s profits, as well as voting rights and potentially dividends.
a. To calculate the price of the stock, we need to use the dividend growth model formula.
The formula is P = D1/(k-g), where P is the stock price,
D1 is the dividend paid next year,
k is the required return, and
g is the growth rate.
We are given that the dividend will be $3.90 next year and the growth rate is 4.75%.
We need to solve for the price of the stock if the required return is 16%.
P = $3.90/(0.16 - 0.0475)
P = $76.32
Therefore, you would pay $76.32 for the stock if you want a return of 16%.
b. Now, we need to solve for the price of the stock if the required return is 9%.
P = $3.90/(0.09 - 0.0475)
P = $132.63
Therefore, you would pay $132.63 for the stock if you want a return of 9%.
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Renee works at Indigo Inc. and attends school part-time as part of her company’s educational assistance program. In 2020 her company reimbursed her a total of $6,250 for tuition, books, supplies, fees, etc., related to her schooling. How much of this amount can Renee exclude from her gross income?
A. $0, this is a company sponsored benefit and does affect the individual’s return
B. $5,250, the maximum exclusion allowed under an employer’s educational assistance program
C. $5,750 the maximum exclusion allowed under an employer’s educational assistance program
D. $6,250 the maximum exclusion allowed under an employer’s educational assistance program
Clover Hardware sold a range of products. A few weeks ago, orders arrived for the garden center and outdoor living areas. 500 grills, purchased at a cost of $75 each, were distributed among 10 locations. 200 were sold for $175 each across all locations. The cost of goods sold totals __________.
Answer:
COGS= $15,000
Explanation:
Giving the following information:
Purchase= 500 grills
Unitary cost= $75
Units sold= 200
To calculate the cost of goods sold, we need to use the following formula:
COGS= beginning finished inventory + cost of goods purchased - ending finished inventory
COGS= 0 + 500*75 - 300*75
COGS= $15,000
or;
COGS= 200*75= $15,000
The conversion period is 31 days after termination from group coverage. This means the individual must apply for individual coverage within 31 days after the date of group coverage termination. The extension does not apply because Tim notified his employees of the conversion right.The correct answer is:
If the group life insurance policy or coverage for a class of insureds ends, insureds who have been covered under the group life insurance policy for at least three years may convert $10,000 or the amount of terminating group life insurance, whichever is less.
What is the life insurance conversion period?A term-to-permanent life insurance conversion, often known as a "term-to-perm" conversion, allows you to increase the length of your life insurance coverage. You may currently hold a 10-, 15-, 20-, or 30-year term life insurance policy. Rather than letting it lapse, you may be able to switch it for a permanent insurance without having to undergo a new medical exam.
A conversion privilege ensures coverage and fixed premium payments for a predetermined number of years regardless of the health of the insured.
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is it worth being in the national honors society? , if so why?
I got invited to join national honors society but I decided not to do it because you're kinda expected to do a lot. It sounds stressful to constantly have to keep your grades high and fulfill the other requirements they set for you. It sounds hard to manage on top of everything else you may have going on in your life.
However, to some it may be worth it because it sets a great image for you especially if you plan on going to college. By keeping your grades high all year long you'll get benefits to college and are more likely to get accepted in wherever you want to go. It's up to you to decide if it's worth it or not.
What is a product market AND how do I choose a product market . Pls help quick!!!!
Answer:
Product markets typically contain groups of consumers that share a fairly specific need that only certain and closely related kinds of products or services can meet. In the case of smartphone users, for example, only phones with specific and more or less comparable capabilities can serve the needs of these consumers. In a product market, the capacity to serve the market is often predicated on the method. Only a company that produces smartphones can compete for this market, let alone hold an intrinsic advantage, because only that product suffices.
Which of the following is considered the more industrial form of fishing?
A: Grouping
B: Netting
C: Gathering
Answer:
B
Explanation:
I hear netting a lot when people talk about fishing. I don't hear the other two when talking about fishing.
Harrison Company calculated the following amounts concerning its financial information for the years ending December 31, 2017 and 2016: Current ratio Net Profit margin 2017 3.1 to 1 22% 2016 2.0 to 1 18% Required: SHOW YOUR WORKINGS 1- Examine Harrison's ratios. Is the change in the current ratio favorable or not? Explain your answer. (2 points) 2- Examine Harrison's ratios. Is the change in the net profit margin favorable or not? Explain your answer. (2 points)
The current ratio has increased from 2.0 to 1 in 2016 to 3.1 to 1 in 2017. A higher current ratio indicates that the company has more current assets available to pay off its current liabilities.
To determine whether the change in the current ratio is favorable or not, we need to compare the ratios for 2017 and 2016.
Current Ratio = Current Assets / Current Liabilities
2017 Current Ratio = 3.1 to 1
2016 Current Ratio = 2.0 to 1
This is generally seen as favorable, as it suggests that the company is in a better position to meet its short-term obligations. Therefore, the change in the current ratio is favorable for Harrison Company.
To determine whether the change in the net profit margin is favorable or not, we need to compare the ratios for 2017 and 2016.
Net Profit Margin = Net Profit / Total Revenue
2017 Net Profit Margin = 22%
2016 Net Profit Margin = 18%
The net profit margin has increased from 18% in 2016 to 22% in 2017. A higher net profit margin indicates that the company is generating more profit for each dollar of revenue it generates. This is generally seen as favorable, as it suggests that the company is more efficient in managing its costs and generating profit. Therefore, the change in the net profit margin is favorable for Harrison Company.
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