What will be the future value of that cash amount

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Q1. Didasko Ltd runs a shoes manufacturing factory. They charged for $40 each shoes. The fixed costs are $21 600 per year. Producing each unit incurs $20 of labour costs and $3 of raw material costs. If Didasko Ltd's cost of plant and equipment increases, which of the following is correct?

a. No change occurs

b. The break-even point increases

c. Variable costs increases

d. The contribution margin increases

Q2. Tata Motors had $32,115 in Cash and Cash Equivalents as at 31 March, 2015. If Tata Motors is able to earn an average rate of interest equal to 1.8% p.a., compounding annually, what will be the future value of that cash amount after 7 years?

Reference no: EM133105619

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