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Crazy boy [7]
3 years ago
12

PLEASE HELP!!!!! Nicholas starts a taxi cab business. He buys a garage, hires three drivers, buys two taxi-cabs, he sends his ca

b drivers to driving school for better driving skills and road knowledge, and advertises in the local newspaper. What action(s) represents CAPITAL investment? *Remember, capital can refer to physical or human capital. (Maybe more than one answer)
A. the purchased taxi cabs

B. the purchased garage

C. the taxi cab driver training

D. the newspaper ad

E. the taxi drivers
Business
1 answer:
Nostrana [21]3 years ago
3 0
A. The purchased taxi cabs.
The gov. Uses it as capital investment since it is a mode of public transportation. The answer could also be c so people can drive it (with proper training) so other people can use it.
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                                                Last year           Current year

Selling Price                      10                         10

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Break even is the point where total cost is equal to total revenue mean no profit and loss.

company earns the contribution margin after covering the variable cost, now only fix cost remains for break even.

Break Even using FIFO method :  first In first out system

Fix Cost                                                                            =     86000

contribution from opening units(6000*5)                            =     30000

Remaining Fix cost that should be Covered from

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Units to be sold for break-even ( 56000/4)   = 14000

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Fix cost                              = -86000

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Current   14000*4             = 56000

Profit                                   = 0

Break Even using LIFO method : Last in first out

Fix Cost                                                                            =     86000

Break even =  Fix Cost / Contribution margin

Break even =  86000/4 =21500

current production is 24000 which is higher than break even units so we can cover the fix cost from current year production because company is using lifo method. we do not need opening units for the break even.

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