Question

You are a producer of cold medicine. Last month, a flood at your factory eliminated 50% of your firm’s production capability. At the same time, your compensation costs increased by 5% because of an annual pay raise. What is the consequence of these events?

Answer 1

Answer:

lost of investment by 55% or more

Explanation:

Almost half of the firms production capability was lost, a serious effect of the company and its investment, not only do we lose 50% of production capability, our compensation also increased by 5%, a great effect on the finances of the company.

Just with the flood affecting 50% of the firms production has caused a big damaged on the company and the company has lost 50% of its investment which is no way good for any company.