Julia s Jewelers markets a new line of diamonds each year. You are aware of the
ID: 2722072 • Letter: J
Question
Julia s Jewelers markets a new line of diamonds each year. You are aware of the following information. Which of the following pieces of information are NOT relevant to determining whether or not to take the project?
A. Julia s new design replaces an old design. The old design earned $465,000 in sales.
B. Sales of the new design compliment an existing line of pearl jewelry. Sales of the diamonds are expected to result in an increase of $350,000 in sales of the pearl jewelry.
C. The interest payment on debt required to buy the diamonds are $38,000.
D. Releasing a new line of diamond jewelry requires an increase in working capital of $218,000.
E. The cost of the new merchandise is 35% of the sale price.
A. Julia s new design replaces an old design. The old design earned $465,000 in sales.
B. Sales of the new design compliment an existing line of pearl jewelry. Sales of the diamonds are expected to result in an increase of $350,000 in sales of the pearl jewelry.
C. The interest payment on debt required to buy the diamonds are $38,000.
D. Releasing a new line of diamond jewelry requires an increase in working capital of $218,000.
E. The cost of the new merchandise is 35% of the sale price.
Explanation / Answer
A. Julia s new design replaces an old design. The old design earned $465,000 in sales.
as it doesnt related to new line
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