Exam DISC-RM Practice Question 2
Study guide: Exam DISC-RM
With illustrative figures in thousands of dollars, a firm has annual revenue of $5,000, salaries of $3,000, other operating costs of $1,200 and interest of $300. Its owners value it at 10 times its annual profit. The firm adopts a safety and insurance program that costs $100 a year. As a result, customers buy more, raising revenue by $60; employees accept $40 less in total pay; and lenders cut its interest by $20. The owners keep the multiple of 10. What is the firm's value after the program?
- A) $4,000
- B) $5,000
- C) $5,200
- D) $6,200
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