The break-even point is the sales level at which the total sales revenue is the same as the total costs.
What is break-even point?
The break-even point for any company is the point at which its total sales revenue is the same as its total costs( i.e. total variable costs plus overheads).
At the break-even point. the firm in question makes neither gain nor loss, in that it is only able to recover all of its costs, which is an indication that the business would soon be able to make profits because it has been able to move the point of losses to the point zero profit.
It is incorrect to calculate break-even point as costs of goods being equal other expenses, the revenue has not been considered.
Also, when total sales is the same fixed costs, only fixed costs have been recovered, the variable costs are still outstanding, the same applies to the situation where the total sales is the same as the variable costs, the fixed costs have also not been recovered.
Overall, at breakeven point, total sales equate total costs, all costs, hence, the option(a) is correct.
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Answer:
The present worth of aircraft = $29137.82
Explanation:
Given the cost of money (r ) = 10%
The initial cost of small aircraft = $35000
Annual repair and maintenance costs (A) = $20000
Salvage valaue = $10000
Now calculate the present value of aircraft by adding the initial cost of annual maintenance and salvage value and subtracting the initial cost.
![Present worth = initial cost + \frac{A[1-(1+r)^{-n}]}{r} - \frac{Salvage \ value}{(1 + r)^{n}} \\= 35000 + \frac{20000 [1 – (1+ 0.01)^{-2}]}{0.01} - \frac{10000}{(1 + 0.01)^{2}} \\= $29137.82](https://tex.z-dn.net/?f=Present%20worth%20%3D%20initial%20cost%20%2B%20%5Cfrac%7BA%5B1-%281%2Br%29%5E%7B-n%7D%5D%7D%7Br%7D%20-%20%5Cfrac%7BSalvage%20%5C%20value%7D%7B%281%20%2B%20r%29%5E%7Bn%7D%7D%20%5C%5C%3D%2035000%20%2B%20%5Cfrac%7B20000%20%5B1%20%E2%80%93%20%281%2B%200.01%29%5E%7B-2%7D%5D%7D%7B0.01%7D%20-%20%5Cfrac%7B10000%7D%7B%281%20%2B%200.01%29%5E%7B2%7D%7D%20%5C%5C%3D%20%2429137.82)
CPR training and first aid as well as training to run a business
Answer:(:
Explanation:
A C corporation, under United States federal income tax law, is any corporation that is taxed separately from its owners.