Question

Can the company report a positive income by increasing production to 21,000 tons and storing the 4,200 tons of excess production in inventory?

Answer 1

To report a positive income, a company needs to generate more revenue than expenses. Increasing production and storing excess inventory can contribute to a positive income if the inventory can be sold at a profit.

Step-by-step explanation:

In order for a company to report a positive income, it needs to generate more revenue than expenses. Increasing production to 21,000 tons and storing the 4,200 tons of excess production in inventory can contribute to a positive income if the company is able to sell the excess inventory at a profit. However, it's important to consider other factors such as the cost of storing the excess inventory and whether there is enough demand in the market for the additional production.