Question: CCC provides script writing and content production services to several film production studios located in D-Land. CCC's script writers recently began industrial action (withheld the

CCC provides script writing and content production services to several film production studios located in D-Land. CCC's script writers recently began industrial action (withheld the supply of their services), to increase their rates of pay. It is estimated the action will last for six months and will interrupt the completion of several film productions scheduled for release towards the end of the year. If production deadlines cannot be met, then CCC will be in breach of contract with the film studios and will forfeit production fees and incur penalties. As CCC's finance manager you have been asked to update the senior leadership team on the impact this internal constraint will have on CCC's financial position and performance. Which ratio would be positively impacted by the current industrial action at CCC? Solution A.Gross margin. B.Net margin. C.Return on capital employed (ROCE). D.Inventory days

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