Recent orders
the opportunity cost of the production foregone of BEPs other regular products has not been accounted while accepting the proposal of SEI. Moreover
since the SEI has already tendered breach of deal for buying lesser quantity of stock. It is also not sure whether SEI would buy BEP’s products consistently and frequently in future periods. In addition
we can clearly see that at 30% sale of stock is a loss for the company amounting to £ 39
000 and negative profit margin ratio of 7%. Therefore
000 due to fears of downturn in the economy. However
as we can see the breakeven sales turned out to be £ 365