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olga_2 [115]
3 years ago
12

Small business owner Jay Goltz described several decisions he made to reduce the fixed costs of his businesses, including replac

ing halogen lamps with LED lamps. Goltz noted, "I'm guessing that many business owners could save a lot more than pennies on their fixed costs, and those savings ... fall right to the bottom line."
a. Why are the costs of electricity used to power the lights used in Mr. Goltz's businesses fixed costs?
b. Explain why Goltz wrote that reducing fixed costs results in savings that "fall right to the bottom line."
Business
1 answer:
Maru [420]3 years ago
4 0

Answer:

A) Electricity costs are considered fixed costs because the company must pay them regardless of the volume of output. The cost of electricity varies from month to month since the consumption level is not always exactly the same, e.g. one day you turn on your computer 10 minutes earlier and your electric bill will increase a few cents. But generally speaking, the electric bill varies very little and it is fairly constant around certain average level.

B) A business's bottom line is net profits, and net profits are calculated by subtracting fixed costs and variable costs from total revenue (and taxes of course). If the fixed costs decrease, your net profit will increase.

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Which of the following is the formula for break-even point in sales dollars? A : Fixed costs divided by contribution margin rati
ruslelena [56]

Answer:

B. Fixed costs divided by unit contribution margin

Explanation:

In sales dollars, Break-Even point = Fixed Costs ÷ Contribution Margin.

Break-Even point in (units) = Fixed Costs / (Sales price per unit - Variable costs per unit).

The Break even point is a measure of which a company can determine if when the product its manufactured or produced will start to be profitable.

8 0
3 years ago
Tim loaned a friend $4,000 to buy a used car. In the current year, Tim’s friend declares bankruptcy and the debt is considered t
julsineya [31]

Answer:

e. $3,000 short-term capital loss (STCL)

Explanation:

From the given information;

Tim may deduct only $3,000 short-term capital loss (STCL) because the loan is not business-related. SO, he can claim a maximum of $3000 in the current year and the remaining can be forwarded to ordinary income on the individual return in any one tax year.

5 0
3 years ago
How many schools in plano
Sindrei [870]

Answer:

There are 67 schools,44 elementary schools, 13 middles schools, 6 high schools, 3 senior high schools, and 1 alternative STEM-based high school, Plano ISD Academy High School. Out of the 67 schools, 56 are located within the city of Plano.

Explanation:

I hope this helps! :)

7 0
3 years ago
" what demographic and psychographic changes are creating business opportunities for new ventures
kkurt [141]
A major one is the increase in globalization.

now a days people can talk to anyone in any part of the world at any time they want for free and within an instant of when they think of it. Bills and payments can be made from the tap of a button. Someone can stay in their house there entire life and have everything they ever needed. this is being translated to the business world in massive ways.
4 0
3 years ago
Montoya manufacturing has fixed costs of $3,000,000 and variable costs are 40% of sales. what are the required sales if montoya
frosja888 [35]
Fixed costs = $3,000,000
Variable costs = 40% of Sales
Sales - x
Net income = $300,000
3,000,000 + 0.4 x + 300,000 = x
3,300,000 = x - 0.4 x
0.6 x = 3,300,000
x = 3,300,000 : 0.6
x = 5,500,000
We can prove it:
3,000,000 ( FC )+ 2,200,000 ( VC ) + 300,000 = 5,500,000
Answer:
The required sales for Montoya manufacturing: $ 5,500,000.
5 0
3 years ago
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