The idea that component-based development produces an estimated date for the delivery of the final product that is more realistic and attainable is completely false

Stemway requires a new manufacturing facility. Management found three locations; all of which would provide needed capacity, the only difference is the price. Location A may be purchased for $500,000. Location B may be acquired with a down payment of $100,000 and annual payments at the end of each of the next twenty years of $50,000. Location C requires $40,000 payments at the beginning of each of the next twenty-five years. Assuming Stemway's borrowing costs are 8% per annum, which option is the least costly to the company?

a. Location A. b. Location B. c. Location C. d. Location A and Location B.

Operating leverage predicts the effects that fixed costs have on changes in operating income when ________

A) production is discontinued B) there are no sales returns C) variable costs change D) sales volume changes