A business sells products for rich demand is highly seasonal A business sells pr

Question

A business sells products for rich demand is highly seasonal A business sells products for rich demand is highly seasonal Directions: Use the information below to answer the following question. 20Y1 20Y2 20Y3 Sales $824,000 $956,000$1,120,000 Net fixed assets $226,000 $239,000 $251,000 Assuming no revaluation of fixed assets has occurred, which one of the following is the correct conclusion to draw from this trend? les are growing The business has increased its productivity and may need to add fixed assets to support sales growth. The business is becoming less productive and may need The business has used a double-declining rate of depreciation. to replace fixed assets to gain efficien

Explanation / Answer

Answer is The business has increased its productivity and may need to add fixed assets to support sales growth. Explanation; The sales has been increasing year on year as is reflecting in the sales figure of three years. However, the fixed assets has also been increased but not at the same pace as with sales.

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