Answer:
SWOT analysis
Explanation:
Carlos will need the use of SWOT analysis to be able to complete his task.
What is SWOT analysis?SWOT is known to be a term that connote or stands for:
Strengths WeaknessesOpportunitiesThreats.Note that the Strengths and weaknesses are said to be a part of the internal attribute of a firm and they are seen as the things that you have a level of control over.
Therefor, based on the above, Carlos will need the use of SWOT analysis to be able to complete his task.
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Salaries and wages expense should have been accrued on december 31st, but the entry was not made. The result of this oversight is that.
The result of this oversight is that obligations are underestimated.
Adjusting Journal is an accounting journal that is used to make adjustments to certain account balances or post transactions to match the actual situation in the process of preparing financial statements. Examples of adjusting entries for merchandise inventory and office supplies. Adjusting entries are used by trading, service, manufacturing and other entities.
The basic concept of adjusting entries is the basic accounting concept used as the basis for making adjusting entries.
Examples of transactions recorded in adjusting entries are:
Prepaid lease transactions,Prepaid insurance,Prepaid income,Depreciation of fixed assets,Bad debts,Bank reconciliationSupplies on handIncome SummaryAllowance for loss of receivablesMerchandise inventoryYou can learn more about Adjusting Journal here brainly.com/question/14895809
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from 7 pm to midnight only percent of the personal and commercial vehicles on the streets and highways are being driven for economic reasons
From 7 pm to midnight only percent of the personal and commercial vehicles on the streets and highways are being driven for economic reasons 80
Therefore the correct answer is 80
What is Economic Reasons?
The increase in production of goods and services from one period to the next is called economic growth. As a result, the prices of these products and services increase, which increases the profits of the companies. It has a snowball effect, often resulting in higher stock prices and more jobs. Both businesses and consumers can invest more money in new projects. As a result, economic growth is one of the most important, if not the most important, indicators. Economists quantify it in nominal or real terms and take inflation into account. A country's Gross Domestic Product (GDP) or Gross National Product (GNP) is a classic way to quantify overall growth (GDP).
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Incomplete Question
a small percent of international combinations fall short of their objectives and the majority continue operating for several years.
A small percent of international combinations fall short of their objectives and the majority is not continue operating for several years. So the correct answer is False.
What do you mean by Percentage?
The term "percent" comes from the Latin per centum, which means "hundred" or "by the hundred." The symbol for "percent" evolved from the Italian expression per cento, which means "for a hundred." The "per" was frequently shortened as "p." and finally vanished entirely. The "cento" symbol is constructed from %. Percent modifications applied progressively do not add up as expected.
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using information systems to develop extensive knowledge of your customers, thereby providing high-quality customer service, .
Using information systems to develop extensive knowledge of your customers, thereby providing high-quality customer service, Increases customer switching costs.
Switching costs are the fees a purchaser will pay as a result of switching brands or merchandise. Switching costs may be financial, psychological, effort-based, and time-primarily based. Switching costs may be categorized as high switching costs or low switching costs.
Why is switching costs essential?
Switching costs are important because they allow stores to maintain sales and amplify emblem awareness. Due to the fact that having high switching costs makes purchasers much less probable to leave or switch to a competitor, your income can also remain the same or grow.
How do you reduce switching costs?
To lessen economic switching costs, do not forget the use of a freemium model for your product. for example, Slack does a brilliant task of easing users into their paid plans. Slack starts off evolved off as unfastened for a constrained of customers, which means that customers can check out the usage of Slack without any bad economic impact.
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joe runs a landscape company and uses one of the bedrooms in his home as a home office this office could be used to earn rental income from college students average rental income and joe's neighborhood were to rise
joe's opportunity cost of using a bedroom as a home office would increase.
What is opportunity cost?Opportunity costs are the possible advantages that a person, investor, or company forgoes while deciding between two options. Opportunity costs are by definition invisible, making it simple to ignore them. Making smarter decisions requires an understanding of the possible possibilities lost when a company or person choose one investment over another.
What is the difference between opportunity cost and risk?
The main distinction between the two is that opportunity cost compares an investment's actual performance to another investment's real performance whereas risk compares an investment's actual performance to the predicted performance of the same investment.
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consider the domino’s "pizza turnaround" case study you read in this lesson. based on its actions, which of these things would domino’s be most likely to do next? offer loyal customers coupons for free pizza ask its customers for unique topping suggestions promise to deliver customer’s pizza faster create a convenient online pizza ordering system
Things domino’s most likely to do next ask its customers for unique topping suggestions.
A customer is a person or commercial enterprise that purchases any other company's goods or services. Customers are important because they force revenues; without them, businesses can't continue to exist.
Regardless of what industry you are in or what styles of products and services you promote, your purchaser is the maximum critical part of your business. Without the customer, you do not see any sales. As a result, they may be a critical aspect while developing your advertising messaging and approach.
The key to the right customer support is constructing the right relationships with your clients. Thanking the customer and promoting a tremendous, useful, and friendly environment will ensure they leave a great impression. A satisfied purchaser will return regularly and is probably to spend extra.
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uninsured drivers become subject to license and vehicle registration suspension when accident damages amount to: $25 to property of one person at least $1000 to property of one person $50 to property of one person $100 to property of one person submit answer
When accident damages total at least $1000 to one person's property, uninsured drivers' licenses and vehicle registrations are suspended.
Unlicensed drivers are unapproved for a reason. Unlicensed drivers have either ignored safety regulations, driven while impaired by alcohol, chosen not to maintain proper insurance coverage, previously posed a substantial risk to others on the road and possibly seriously injuring or killing someone with a moving vehicle, or they have haven't ever received full driver's education covering traffic laws. Simply put, these drivers endanger themselves and others by posing a greater risk to other motorists on the roadway.
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Which statement is true about an annual percentage rate? Answer choices: It is reduced every time you make a payment, It is of little interest to the average borrower, it is a simple way to compare all the various elements of different loans, or it is equal to the interest rate times the principal.
The claim that an annual percentage rate is equal to the interest rate multiplied by the principal is true.
The annual interest produced by a sum that is paid to investors or charged to borrowers is referred to as the annual percentage rate (APR). APR is a percentage that expresses the actual annual cost of borrowing money throughout the course of a loan or the revenue from an investment. This does not account for compounding and includes any fees or additional expenditures related to the transaction. Consumers can evaluate lenders, credit cards, or investment goods using the APR as a benchmark figure. It factors in variables like monthly payments to determine what proportion of the principal you'll pay annually.
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raheem bought stock in a tech company that has just announced a dividend. he did not receive the dividend even though the record date had not yet passed when he purchased it.
As a result, given the circumstances, the reason he did not get the dividend is that he bought the stock on or after the ex-dividend date.
What is the dividend?A dividend is a payment made by a corporation to its shareholders that is decided by the board of directors. Dividend payments are frequently made quarterly and might take the form of cash payments or stock reinvestments. The dividend yield, which is the dividend per share, is stated as a percentage of the share price of a corporation, for example, 2.5%. If a common shareholder of a dividend-paying company owns the shares on the ex-dividend date or earlier, they are eligible to receive a payment.
Raheem would not be entitled for the dividend if he bought the stock on or after the ex-dividend date because the dividend is only paid to investors who bought the stock before that date.
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the city council is considering a new ordinance to require stores to provide reusable bags and eliminate disposal paper or plastic bags. in determining whether to pass the law, the city council obtained an estimate for the expense stores would incur in offering reusable instead of disposable bags. they also obtained an estimate for the savings which would result from not having to clean up litter from disposable bags. finally, they consulted with an environmentalist to assess the positive impact that phasing out bags would have, including enhanced safety for local wildlife. in deciding whether to pass the law, the council relied on:
Cost-benefit analysis entails totaling up all expenses associated with a project or decision and deducting that sum from all anticipated benefits. (This value is sometimes shown as a ratio.)
What is a cost-benefit analysis?Comparing the anticipated or predicted costs and benefits (or opportunities) connected with a project choice in order to assess whether it makes sense from a business standpoint is known as a cost-benefit analysis.
The type of data-driven decision-making that is most frequently used in business, both at established organizations and startups, is cost-benefit analysis. Whether a decision is made for business purposes or not, it can be made using the basic ideas and framework.
Before making important organizational decisions, conducting this type of analysis has major financial advantages. Analyses allow you to separate out important data, such as the value chain of your company or the ROI of a project.
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ap gov frq our politicians have aggressively pursued a policy of globalization – moving our jobs, our wealth and our factories to mexico and oversea
"Our politicians have aggressively pursued a policy of globalization—moving our jobs, our wealth, and our factories to Mexico and overseas. Globalization has made . . . politicians very wealthy. But it has left millions of our workers with nothing but poverty and heartache." Three models of representative democracy that have been used to describe American democracy are participatory, pluralist, and elite.
In a democracy, the populace has the power to decide on legislation and conduct deliberations. The first democracies were established by the ancient Greeks. The Greek words for people (demos) and rule (kratos) are where the word "democracy" originates. Supporting democracy helps build a more secure, stable, and prosperous global environment where the United States can advance its national interests in addition to advancing such core American values as worker rights and freedom of religion. Democratic Principles The principles or ideals that define a fair society, such as democratic rule of law, freedom of speech, equality before the law, and social justice.
Note that the full question is:
Describe the model of democracy that is best represented in the quotation. The elite model, in which the elites have a disproportionate amount of influence in the policy-making process "Our politicians have aggressively pursued a policy of globalization—moving our jobs, our wealth, and our factories to Mexico and overseas. Globalization has made . . . politicians very wealthy. But it has left millions of our workers with nothing but poverty and heartache." —Donald Trump, 2016
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What is structurally different between starch and cellulose that gives them different physical properties?.
Cellulose has rigid α−1,4 glycosidic linkages while starch has less inflexible β−1, four glycosidic linkages. c. Cellulose has amylose and amylopectin, making it greater inflexible than starch.
Cellulose is a natural compound with the formulation ₙ, a polysaccharide inclusive of a linear chain of numerous hundred to many lots of β-related D-glucose gadgets. Cellulose is a vital structural factor of the primary cell wall of inexperienced flowers, many styles of algae, and the oomycetes.
Cellulose is a fiber observed in fruits, vegetables, and other plant ingredients as a part of a plant's mobile walls. it is discovered in tree bark and a plant's leaves. while you devour plant foods, you're eating cellulose.
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all points along a production possibilities frontier are equally efficient in terms of productive efficiency.
At Point A in the production opportunities graph shown above, the economizing is not using its resources efficiently.
Are all points in the production possibilities frontier equally efficient?Not all points on the curve are Pareto efficient, however; only in the case where the frontier rate of conversion is equal to all consumers' marginal rate of substitution and hence equal to the percentage of prices will it be unthinkable to find any trade that will make no customer worse off. The PPF indicates that the production of one thing may improve only if the production of the other commodity subsides.
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(c) the store is currently producing 80 milkshakes and 110 sundaes. calculate the opportunity cost of increasing milkshake production from 80 to 100 milkshakes. show your work.
The opportunity cost is the -77.5 units of sundae not produced.
What is opportunity cost?
The potential profit lost from a missed chance is referred to as the “opportunity cost” and is the result of selecting one option over another.
The total number of milkshakes made by a sundae is 110.
Milkshake production has been doubled from 80 to 100.
The total number of sundaes generated is (110/80) 100/1 = 137.5 137.
From 100 milkshakes, 5 units of sundae are predicted to be generated.
When the quantity of milkshake created is 100, the actual quantity of sundae produced is 60.
The opportunity cost is the extra 20 milkshakes,
(137.5 – 60)
= 77.5
As a result, the opportunity cost = -77.5 units of sundae not produced.
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given an initial 60 billion dollar budget, how much would a 3% annual productivity improvement save over ten years? how much less would the 10th year ...
$15,754,552.39 less would be the 10th year in comparison to the 60 billion.
What is comparison?
Comparison, often known as comparing, is the process of determining how much the relevant, comparable properties of two or more items are similar, distinct, and one another. When characteristics vary, it is possible to examine the differences to determine which feature is best for a certain application. A comparison describes the differences and resemblances between two objects. Anything that is being compared must have sufficient qualities in common with the other object to be useful. The phrase "comparing apples and oranges" refers to the attempt to compare two objects that are too dissimilar to be usefully compared. The use of comparison is pervasive in society, science, and the arts.
Explanation:
Initial value of the budget= $60 m
Growth rate= -3%
Value after 10 years= Initial value*(1+g)^n
=60*(1-3%)^10
=60*0.7374241269
=44.24544761 million
=44245447.61
Amount saved= $60000000- 44.24544761
=60000000-44245447.61
=$15,754,552.39
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dalvin is considering multiple job offers. his wife recently had a baby with serious health issues. what non-income factor would influence his decision? location working hours personal satisfaction availability of benefits
Dalvin is contemplating several career opportunities. His wife recently gave birth to a baby with major health problems. Availability of benefits factor which is non-income factor would influence his decision.
What is Non-Income?
The elements that don't directly affect income are known as non-income factors. When assessing non-income criteria, personal characteristics such as marriage, health, friendships, religion, and other factors are considered.. These elements influence or alter economic choices based on happiness and level of satisfaction. In the aforementioned example, Dalvin's decision to accept the job was impacted by the non-income element of benefits availability.
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captivating inc. is a motivational consulting business. at the end of its accounting period, may 31, 20y2, captivating inc. has assets of $798,640 and liabilities of $252,370. using the accounting equation and considering each case independently, determine the following amounts:
The Stockholders’ equity as of October 31, 20Y2 is: $546,270.
Stockholders’ equityUsing this formula
Stockholders’ equity =Assets - Liabilities
Where:
Assets= $798,640
Liabilities= $252,370
Let plug in the formula
Stockholders’ equity =$798,640-$252,370
Stockholders’ equity =$546,270
Therefore the Stockholders’ equity as of October 31, 20Y2 is: $546,270
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The complete question is:
captivating inc. is a motivational consulting business. at the end of its accounting period, may 31, 20y2, captivating inc. has assets of $798,640 and liabilities of $252,370. using the accounting equation and considering each case independently, determine the:
Stockholders’ equity as of October 31, 20Y2.
brenda says her assets are definitely greater than her liabilities. which explains whether brenda is correct?brenda is correct because she has five assets and only three liabilities.brenda is correct because all the items should be in the assets column of the balance sheet.brenda is not correct because the total value of her assets could be less than the liabilities.brenda is not
The statement explains whether Brenda is correct is Brenda is not correct because the total value of her assets could be less than the liabilities.Thus option C is correct.
What is Asset?An asset is considered as a resource of the business which has an economic value in the future of the business and helps business activities to take place smoothly.
Brenda is not correct because the total value of her assets could be less than the liabilities as the calculation of assets will be done as-
Assets=Liabilities +Owner’s Equity
This implies that the double entry rule is followed. An accounting entry error is indicated if the balance sheet created does not match.
Therefore, option C is appropriate.
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The complete question is-
Brenda created this personal balance sheet. brenda's balance sheet assets liabilities jewelry food wages health insurance commission rent bank account tips total total brenda says her assets are definitely greater than her liabilities. which explains whether brenda is correct? brenda is correct because she has five assets and only three liabilities. brenda is correct because all the items should be in the assets column of the balance sheet. brenda is not correct because the total value of her assets could be less than the liabilities. brenda is not correct because she needs to list more liabilities.
once submitted, who can cancel an enrollment application before the effective date? a. the client b. the client’s writing agent, as long as they do so before the effective date of the plan c. the client’s doctor d. both a and c
So the option d) both a (the client ) and c (the client’s doctor) is the correct answer.
Enrollment Application
The information provided by or on behalf of an individual to the Exchange in conjunction with a request to enroll as a Subscriber or Dependent is referred to as an Enrollment Application.
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once the appraiser has considered the three methods of valuation of real estate, the final step in the appraisal process is
The subject property and the dependability, quality, and amount of the data used in the methods to value are taken into account in the appraisal process' last step, which also involves analysis.
What is the objective of analysis?
Breaking down a complicated subject or thing into simpler components to better understand it is the process of analysis. Analysis as a formal idea is a relatively new discovery, yet the technique has been used in the study of mathematics and logic since before Aristotle (384–322 B.C.).
What is analysis and what types are there?
Descriptive analysis neatly presents your data and provides a summary of the available data. You can learn more about correlations and relationships between your data's variables by using exploratory data analysis. With a smaller sample size of data, inferential analysis can be used to generalize to a larger population.
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which area in exhibit 9-17 represents deadweight loss under monopoly with perfect price discrimination? area a
There is no loss of deadweight.
WHAT IS DEADWEIGHT LOSS?
The gap between the production and consumption of any given good or service, including taxes, is referred to as deadweight loss in economics. Deadweight loss is most frequently detected when the quantity generated compared to the quantity consumed deviates from the ideal surplus concentration. This discrepancy in the amounts represents the quantity that is being wasted or not being consumed, causing a loss. As a result, both producers and consumers are to blame for this "deadweight loss" since neither group benefits from the excess of total production.
Deadweight loss brought on by a rigid price cap. Despite the fact that the consumer surplus may or may not rise, the production surplus always declines.
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ford company reports depreciation expense of $46,000 for year 2. also, equipment costing $159,000 was sold for its book value in year 2. there were no other equipment purchases or sales during the year. the following selected information is available for ford company from its comparative balance sheet. compute the cash received from the sale of the equipment. at december 31 year 2 year 1 equipment $ 640,000 $ 799,000 accumulated depreciation-equipment 452,000 530,000
The cash received from the sale of the equipment is $35000.
What is depreciation?Depreciation refers to the decrease in the valuation of the assets at the particular period of time. The equipment or the machinery gets outdated after a period of time.
To calculate the cash received, first identify the balance of cumulative depreciation, which is calculated below:
Accumulated depreciation = Beginning balance of accumulated depreciation + depreciation expense - ending balance of accumulated depreciation
= $530,000 + $46,000 - $452,000
= $124,000
Subtract this amount from the equipment's selling price, So, the value is equal to :-
= $159,000 - $124,000
= $35000.
Therefore, it can be concluded that $35000 is cash received from the sale of the equipment.
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you have won a windfall of $ 8829 but unfortunately you are going to receive the money in 9 years. what this windfall worth to you today, if: a) the interest rate is % per year?
What is blown away by the wind is an unexpected, worthless, or sudden profit or advantage. The annual interest rate is the annual interest rate, assuming interest is compounded each year. For example, a $10,000 loan with an annual interest rate of 5% will cost you $500. The annual interest rate is applicable only to the principal loan amount.
Loan interest rates are usually quoted at an annual rate known as the Annual Rate (APR). Interest rates may also apply to amounts earned from bank or credit union savings accounts or certificates of deposit (CDs).
Interest is the amount a lender charges a borrower in addition to the principal amount. In terms of recipients, those who deposit money in a bank or financial institution also get an additional income known as interest received from the depositor, given the time value of the money.
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bob's bakery receives its utility bill of $800 for the month and pays it immediately. record this transaction in the accounting equation.
If bob's bakery receives its utility bill of $800 for the month and pays it immediately. The transaction in the accounting equation is: Increase Expenses and decrease Cash.
Accounting equationThe transaction when recorded using accounting equation will lead to Increase in Expenses and decrease in Cash.
Expenses will increase because paying for utility bill is an expenses while the cash will decrease because the company is paying for the utility using cash. Expenses does not increase cash but rather reduce cash while revenue increase cash.
Accounting equation
Increase Expenses $800
Decrease Cash $800
Therefore If bob's bakery receives its utility bill of $800 for the month and pays it immediately. The transaction in the accounting equation is: Increase Expenses and decrease Cash.
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PLEASE HELP in 2 to 3 sentences, explain the role of prices in a market and include distrbution, producers, and consumers
Price is the biggest and most important direct determinant in a market for aspects like distribution, producers, and the consumers in the market at large.
What is the significance of price?Price of a product, in an economy, can be referred to or considered as the rate at which a particular quantity of such product is demanded and supplied in the market in which such price prevails.
Higher price attracts producers and distributors, while lower price of a product in a market will attract a larger number of customers to buy such product.
Therefore, the significance regarding price has been aforementioned.
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a small clothing firm currently produces 50,000 shirts and blouses per month. the costs of its factory, raw materials, and labor are $500,000 per month. if the company is to increase production by 5,000 and that requires an additional labor and raw material expense of $100,000, what is the best estimate of costs of the increased production?
A small clothing company currently Production 50,000 shirts and blouses per month. His factory, raw materials, and labor costs are $500,000 per month. If the company was asked to increase production by 5,000, which would cost him $100,000 in additional labor and raw materials, his best estimate of the cost of the increase would be $100,000.
Most of us think he's on his way to making a million dollars and becoming an overnight star. But the reality is that apparel profit margins are notoriously low. Industry analysts expect profit margins to be between 4% and 13%. This means that for every $100 you invest, you get back $104 to $113.
Production is the process of making or producing goods or products from raw materials or parts. In other words, production takes inputs and uses them to produce outputs suitable for the consumption of goods or products of value to end-users or customers.
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a county taxes real property at a millage rate of 15. if your customer owns real property in the county and the assessed value is 80% of the current market value of $150,000, the annual tax is
If your customer owns real property in the county and the assessed value is 80% of the current market value of $150,000, the annual tax is $1800
15 x 0.001=0.015
8 x $150,000=120,000
120,000x.015=$1800
Another way to calculate the number of tax during this example is to multiply your assessed value by 0.0185. Using the millage rate above, a home assessed at $300,000 would have a bill of $5,550. The formula is: Assessed value ($300,000) x millage rate (1.85%, or 0.0185) = land tax ($5,550). To calculate the mileage, or mill rate, a possessor divides the quantity of mills by 1,000.
As an example, say a neighborhood taxing authority encompasses a mill rate of 15 on the assessed value of holding in its jurisdiction. That puts the capital levy rate at 1.5% before any county taxes adjustments or exemptions. To calculate your individual property's effective charge per unit, all you have got to try and do is divide your annual invoice by what you estimate to be the value of your property.
The assessed value estimates the reasonable value for your home. it's based upon prevailing local realty market conditions. Multiply the value of your item or service by the county taxes charge per unit. If you have got a charge per unit as a percentage, divide that number by 100 to induce the charge per unit as a decimal. Then use this number within the multiplication process.
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during the 2016 presidential campaign, bernie sanders, a democratic candidate, and donald trump, a republican candidate, both denounced nafta as having a negative impact on jobs in the united states. in particular, they cited the impact on manufacturing jobs. free trade agreements may lead to reduced output and the loss of american jobs in certain industries because in industries in which a trading partner has a higher opportunity cost, domestic firms typically gain market share. in industries in which the united states has a comparative advantage, domestic firms typically lose market share. in industries in which the united states has a lower opportunity cost, foreign firms typically gain market share. in industries in which a trading partner has a comparative advantage, domestic firms typically lose market share.
In industries in which a trading partner has a comparative advantage, domestic firms typically lose market share.
What is a market share?Market share is the portion of a company's business that represents the entire revenue or sales in a market. For instance, if an industry sells 50,000 units annually, a company selling 5,000 of those units would hold a 10% share of the market.
"Because this will show if expectations are to be met by growing with the market or by stealing share from competitors, marketers need to be able to translate and incorporate sales targets into market share. The latter is usually always more challenging to accomplish. Market share frequently influences strategic or tactical action and is regularly watched for any indications of shifts in the competitive environment."
Explanation:
(i)A free trade agreement is a pact between two or more nations to lower export and import restrictions between the parties.
(ii)Free trade agreements may result in decreased output and the loss of American jobs in some sectors since domestic companies often lose market share in sectors where a trading partner has a comparative advantage.
(iii)This means that the trading partner can create the goods at the lowest opportunity cost if it possesses comparative advantage methods. As a result, the trading partner nation produces a greater number of commodities at the lowest possible cost, increasing the likelihood of trade. As a result, it lowers American production, which results in the loss of market share and jobs for Americans in several industries.
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which dimension of the triple bottom line seeks to benefit its employees, the local community, and other entities that are impacted by the firm's existence?
Social dimension f the triple bottom line seeks to benefit its employees, the local community, and other entities that are impacted by the firm's existence.
What is social dimension?The term "dimension" can be used to describe a feature, appearance, stage, or situation of something. Social, on the other hand, is what connects society: the group of people who live in the same area and adhere to the same laws.
We can comprehend what the social dimension is thanks to these definitions. This is the term of the group of elements involved in the interactions between people and societal life.
The social component might be seen as having to do with how someone is socialized. Humans are social creatures that rely on others to meet their material and symbolic needs. A person must master all of the social tools that are innate to him in order to fully realize himself.
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lindon company is the exclusive distributor for an automotive product that sells for $40 per unit and has a cm ratio of 30%. the company’s fixed expenses are $180,000 per year. the company plans to sell 16,000 units this year.
The sales level at which the contribution margin equals fixed costs, with no profit or loss for the company, is known as the break-even point. To turn a profit, a company must surpass the break-even point.
What is fixed cost?Fixed costs are expenses that remain constant regardless of whether sales or production volumes rise or fall. This is so because they are not involved in the actual process of producing a good or providing a service. Fixed costs are therefore regarded as indirect costs.
Over a given time frame, fixed costs are constant. Depending on the company's output, variable costs may go up or down. Rental fees, taxes, and insurance are some instances of fixed costs. Direct labor, commission, and credit card fees are a few examples of variable costs.
Given that -
Selling Price = $40
Contribution Margin = 30%
Variable Expenses per unit = Selling Price ∗(1- Contribution Price )
Variable Expenses per unit = $40∗(1 -30%)
Variable Expenses per unit = $40∗(1 -0.30)
Variable Expenses per unit= $40∗(0.70)
Variable Expenses per unit= $28
The number of units for break-even be x
We know that at break-even point,
Total Contribution Margin=Fixed Expenses
Sales - Variable Expenses=Fixed Expenses
$40x - $28x= $18000
[tex]x=\frac{180000}{12}[/tex]
x=15000 units
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