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3 years ago

Discuss the difference between fixed expenses and variable expenses as they relate to a budget.

2 answers:

8 0

Fixed expenses are those that dont change with changes in production level or sales volume, variable is the exact opposite.

SSSSS [86.1K]3 years ago

6 0

Fixed expenses are expenses that stay the same for a person or a business. An example of a fixed expense is rent/mortgage. This expense doesn't change if you are only usig the building for 2 weeks or the entire month, its a set rate. A variable expense is an expense that changes like an electric bill, it varies based on the month and usage. When you budget, you can easily budget for your fixed expenses but you need to allow some room in your budget for expenses that change.

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Suppose that a company is a price taker and sells its product for $15 each. This tells us that the firm is participating in the

galben [10]

Answer:

perfect competition; equal to $15

Explanation:

A Perfect competition industry is characterised by :

1. Firms that are price takers - They do not set price but prices are set by the forces of demand and supply.

2. Prices are equal to marginal revenue and average revenue.

3. plenty buyers and sellers.

4 free entry and exist of firms.

A monopolistic industry is chartcerised by :

1. Firms that are price makers.

2. Plenty buyers and sellers.

3. Price and average revenue are less than the marginal revenue

A monopoly is characterised by :

1. Firms that are price makers.

2. One seller

3. Price and average revenue are less than the marginal revenue

6 0

3 years ago

The wealth of the owners of a corporation is represented by ________.

Sveta_85 [38]

Answer:

The answer is B. share value

6 0

2 years ago

Miranda thinks she is ready to invest in the stock market. What should she do to prepare?

laiz [17]

•Make sure she is financially able to cope if losses are made. Investing in stock markets are risky and the money she put in could be lost so she must make sure she has other savings so she doesn't go in debt/bankrupt.

•Research in order to make an informed choice. She could research types of assets, expert advice, and how the investment would be split.

6 0

3 years ago

Read 2 more answers

Choose all that apply.

Sonja [21]

Capital gains, supply and demand, taxes, and locations (sometimes)

6 0

2 years ago

Read 2 more answers

Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows.

11111nata11111 [884]

Using the degree of operating leverage, the estimated impact on net operating income of a 5 % increase in sales is 6.45%.

The degree of operating leverage (DOL) measures how much a company's operating income varies in response to sales fluctuations.

The DOL ratio assists analysts in determining how changes in sales affect company earnings.

Because a company with high operating leverage has a high proportion of fixed costs, a significant increase in sales can result in significant changes in profits.

If sales increase by 5%, the calculation for increased Net Operating Income is as follows:

Increase in Net Operating Income = Sales Increase x Degree of Operating Leverage

= 5% x 1.29

= 6.45%

Hence, Using the degree of operating leverage, estimated impact on net operating income of a 5 % increase in sales is 6.45%.

Learn more about operating leverage:

brainly.com/question/9212451

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4 0

1 year ago