Answer:
A. $ 450 comma 000
Explanation:
In order to compute the fixed cost per month first we have to determine the variable cost per unit which is shown below.
Variable cost per hour = (High total cost - low total cost) ÷ (High production volume - low production volume)
= ($710,000 - $550,000) ÷ (13,000 units - 5,000 units )
= $160,000 ÷ 8,000 units
= $20
Now the fixed cost equal to
= High total cost - (High production volume × Variable cost per unit)
= $710,000 - (13,000 units × $20)
= $710,000 - $260,000
= $450,000
We simply applied the above formula
Answer:
not just pay them they can award them with extra credit?
Explanation:
Investments can lead to more demand for goods. Investment means an increase in capital spending and is a component of Aggregate Demand (AD), if there is an increase in investment it will help to boost AD and therefore economic growth.
Answer: The problem of this plan is that their income will not be able to break even, because their cost price will be grater than the selling price. Which may cause the new company to wind up
Explanation: break even is a point where the cost price is equal to the selling price. This means that profit nor loss were not made.
Because Avis and Hertz are offering rentals at a prices below average variable cost, the company may not be able to meet up with capital for production of more cars, and this will cause them to wind up.
For a new company, it is always advisable to keep it's selling price a little bit above or the same with it's cost Price, because the strength not any business is the ability to produce more to fill the space of scarcity.
