Ron's Desk Company Expects to Sell $10,000,000 Worth of Desks

Multiple Choice

Ron's Desk Company expects to sell $10,000,000 worth of desks and to produce $10,500,000 worth of desks in the coming year.The company purchases $100,000 of new equipment during the year.Sales for the year turn out to be $9,000,000.Actual investment by Ron's Desk Company equals _______ and planned investment equals _______.

A) $1,000,000;$100,000
B) $1,500,000;$100,000
C) $1,500,000;$600,000
D) $1,600,000;$100,000
E) $1,600,000;$600,000