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elena55 [62]
3 years ago
7

Fixed cost refers to: Group of answer choices the consideration exchanged for the ownership or use of a good or service. total e

xpenses incurred in producing or selling one additional unit of product. the total expense incurred by a firm in producing and marketing a product or service. expenses that are stable and do not change with the quantity of the product that is produced and sold. the sum of the expenses that vary directly with the quantity of the product produced and sold.
Business
1 answer:
Goryan [66]3 years ago
5 0

Answer:

Expenses that are stable and do not change with the quantity of products that is produced and sold

Explanation:

Fixed cost refers to cost that do not change with the level of output. They are otherwise known as overheads or indirect costs and are expenses that are not dependent on the out level of produce by the business.

In addition, fixed cost are also cost that has to be incurred by the business independent of business activities.

Examples of fixed costs are rent, cost of business , loan payments, insurance premiums, salaries etc. All these do not vary with the level or number of units produced or sold.

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Todays electronics specializes in manufacturing modern electronic components. It also builds the equipment that produces the com
iogann1982 [59]

Answer:

Market Condition: Large Facility , Mid - Sized Facility, Small Facility , No Facility

Good Market : 0 , $250,000 , $350,000 , $550,000

Fair Market : $19,000, 0, $29,000 , 129,000

Poor Market : $310,000, $100,000 , $32,000 , 0

Explanation:

Large Facility :

Good Market 550,000 - 550,000 = 0

Fair Market 129,000 - 110,000 = 19,000

Poor Market 0 - 310,000 = 310,000

Mid Sized Facility :

Good Market 550,000 - 300,000 = 250,000

Fair Market 129,000 - 1129,000 = 0

Poor Market 0 - 100,000 = 100,000

Small Facility :

Good Market 550,000 - 200,000 = 350,000

Fair Market 129,000 - 100,000 = 29,000

Poor Market 0 - 32,000 = 32,000

No Facility :

Good Market 550,000 - 0 = 550,000

Fair Market 129,000 - 0 = 129,000

Poor Market 0 - 0 = 0

5 0
3 years ago
The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2015: Account
Nuetrik [128]

Answer:

Postal Service

The amount that would be reported for Stockholders' Equity at December 31, 2015 is:

= $130,000.

Explanation:

a) Trial Balance

December 31, 2015:  

Cash                                         $15,000

Accounts receivable                   11,000

Supplies                                       4,000  

Prepaid insurance (12-month)    6,000

Equipment                               210,000

Accounts payable                                    $ 18,000

Accumulated depreciation – equipment  28,000

Note payable, due 6/30/16                        70,000

Common stock                                           42,000

Retained earnings (1/1/15)                          60,000

Dividends                                   14,000

Service revenue                                        133,000

Advertising expense                 21,000

Depreciation expense              12,000

Insurance expense                    3,000

Rent expense                           17,000

Salaries and wages expense 32,000

Supplies expense                     6,000

Totals                                   $351,000 $351,000

Income Statement for the year ended December 31, 2015

Service revenue                                      $133,000

Advertising expense                 21,000

Depreciation expense              12,000

Insurance expense                    3,000

Rent expense                           17,000

Salaries and wages expense 32,000

Supplies expense                     6,000     $91,000

Net income                                              $42,000

Statement of Retained Earnings

For the year ended December 31, 2015

Retained earnings (1/1/15)                        $60,000

Net income                                                 42,000

Dividends                                                    (14,000)

Retained earnings (December 31, 2015) $88,000

Equity:

Common stock     $42,000

Retained earnings  88,000

Total equity         $130,000

4 0
3 years ago
Lusk company produces and sells 15,900 units of product a each month. the selling price of product a is $29 per unit, and variab
Shkiper50 [21]
<span>Decrease by $57,400 per month. Looks look at the cash flow for continuing to produce product a and discontinuing product a. Continuing to produce Income = 15900 * $29 = $461,100 Variable Expenses = 15900 * 23 = $365,700 Fixed overhead = $109,000 Total cash flow = $461,100 - $365,700 - $109,000 = -$13,600 So the Lusk company is losing $13,600 per month while producing product a. Let's see what happens if they stop producing it. Income = $0 Variable Expenses = $0 Fixed overhead = $71,000 Total cash flow = $0 - $71,000 = -$71,000 So if they stop producing it, their fixed overhead decreases, but is still at $71,000 per month, for a total loss per month of $71,000. The conclusion is to either lose $13,600 per month, or $71,000 per month. So if they stop production of product a, their loss per month will increase by $57,400.</span>
6 0
3 years ago
Imagine that two goods are available to you: apples (X) and pears (Y). You like apples half as much as pears. If your fruit budg
goldenfox [79]

Answer:

the value of the MktRS (market rate of substitution) is 0

Explanation:

The computation of the market rate of substitution is shown below:

Since it is mentioned that

You like apples half as pears

So the equation would be

X = 1 ÷ 2 Y

X ÷ Y = 1 ÷ 2

Now the market rate of substitution of the price is

= $2 ÷ $4

= 1 ÷ 2

So,

= 1 ÷ 2 - 1 ÷ 2

= 0

Hence, the value of the MktRS (market rate of substitution) is 0

The same is to be considered

3 0
3 years ago
Chewy Candy has a beginning inventory of $1,000 with a retail value of $1,800. June purchases were $3,000, with a retail value o
S_A_V [24]

A. $351

B. $949

C. $4161

D. $1416


7 0
3 years ago
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