Ragtown Grill uses cost-plus pricing with a 40% mark-up. The company is currently selling 20,000 units annually, but has a capac
ity of 30,000 units. Each unit has a variable cost of $15. In addition, the company incurs $60,000 in fixed costs annually. For how much is the company selling each unit?
Economic risks refers to the likelihood of a country's macroeconomic conditions affecting investments or domestic/foreign businesses prospect. There are various forms of economic risks. In this case, Infrastructure is the main economic risk affecting the semi-conductor company. Due to the fact that the power grid of south Africa is somewhat reliable and the company needs it for continuous manufacturing process, by moving to south Africa, they bear the risks of infrastructure (economic risks)
The sunk cost is the cost already incurred that will not be recovered in the future. Plus, it's also called past expenses.
This expense is not considered at the time when the decisions are taking and it should be neglected as it is not relevant at the time of the decision-making process
In the given scenario since the amount already spent for a movie ticket and for popcorn and we know that we cannot recover now so it would be termed as a sunk cost
The grace period, during which a policy remain in force even though the premium has not been paid depends on the state. But generally, a grace period of 7 days is usually allowed for weekly premium payments, ten days for monthly payment and thirty one days for other policies.
