Lara Technologies is considering a cash outlay of $230,000 for the purchase of land, which it could lease out for $37,600 per year. If alternative investments that yield a 15% return are available, the opportunity cost of the purchase of the land is a.$34,500 b.$72,100 c.$37,600 d.$3,100

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.