Answer:
The correct answer is option a.
Explanation:
The short-run is an imaginary short period in which all the inputs cannot be varied. There is at least one input that cannot be varied. So in the short run, there are some fixed inputs and some variable inputs.
The cost incurred on fixed inputs are fixed costs and that incurred on variable inputs are variable costs. So there are fixed costs and variable costs in the short run.
In the long run, all inputs are variable so all costs are variable as well.
Answer:
a) total revenue equals total cost.
Explanation:
The break-even point is the level of activity in which total revenue equals total cost. It can also be defined in terms of units sold for a year is as the fixed expenses for the year divided by the contribution margin per unit of product. Note that exactly at the break-even point, there is no profit or loss.
Therefore, the answer is alternative a).
Answer:
simple rate of return = 16.4 %
so correct option is B. 16.4%
Explanation:
given data
purchasing a machine = $423,000
useful life = 9 years
cash operating costs = $112,000 per year
yielding = $27,000
annual depreciation = $47,000
to find out
simple rate of return on the investment
solution
we get here simple rate of return on the investment that is express as
simple rate of return = 
.............................1
put here value we get
simple rate of return = 
solve it we get
simple rate of return = 16.4 %
so correct option is B. 16.4%
