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You run a gypsum mine and make drywall. For every $1,000 worth of gypsum you have on hand, you incur $500 in up-front processing cost
You run a gypsum mine and make drywall. For every $1,000 worth of gypsum you have on hand, you incur $500 in up-front processing cost to make the gypsum into $1,800 worth of drywall. What is the return to turning gypsum into drywall?
a) cannot be determined without knowing the cost to mine the gympsum
b) 20%
c) 80%
d) 30%
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