Question

Mertz Chemical has three divisions. Its consumer product division faces strong competition from companies overseas. During its recent teleconference, Ryan Peterson, the consumer product division manager, reported that his division's sales for the current year were below its break-even point. However, when the division's annual reports were received, Billie Mertz, the company president, was surprised that the consumer product division actually reported a profit of $264,000. How could this be possible?

Answer 1

To,

The President,

Mertz Chemical.

RE: Explanation of the Annual report

The division's deals for the year were prior answered to be underneath its make back the initial investment point, anyway the division's yearly report announced a benefit of $264,000. Despite the fact that it might be astounding to you that we are making pay in any event, when the deals are underneath equal the initial investment point, I might want to clarify that there is no mix-up or revision in it and it is valid. In-spite of deals being underneath the equal the initial investment point there is acceptable measure of pay made thus the reports have been accounted for that way. Expectation everything else is clear.

Thank you.