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Ad libitum [116K]
2 years ago
15

Q2. Why can the distinction between fixed costs and variable costs be made in the short run? Classify the following as fixed or

variable costs: advertising expenditures, fuel, interest on company-issued bonds, shipping charges, payments for raw materials, real estate taxes, executive salaries, insurance premiums, wage payments, sales taxes, and rental payments on leas
Business
1 answer:
Lyrx [107]2 years ago
3 0

Answer:

Variable costs vary with the volume of production and can be changed in the short run.

Fixed costs do not vary with the volume of production and cannot be changed in the short run. Only in the long run can they be changed.

Variable costs:

  • Advertising expenditures
  • Fuel
  • Shipping charges
  • Payments for raw materials
  • Wage payments
  • Sales taxes

Fixed costs:

  • Interest on company issued bonds
  • Real estate taxes
  • Executive salaries
  • Insurance premiums
  • Rental payments on leased office machinery.
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The balance sheet of the Algonquin Company reported assets of $50,000, liabilities of $22,000 and common stock of $15,000. Based
nlexa [21]

Answer:

c) $13,000.

Explanation:

Using the accounting equation;

Assets - liabilities = Owners' equity

Owners' equity is usually made up of the common stock and the retained earnings.

Therefore, given;

Assets = $50,000

Liabilities = $22,000

Owners' equity = $50,000 - $22,000

= $28,000

Owners' equity = Retained earnings + common stock

Retained earnings = $28,000 - $15,000

= $13,000

Amount for retained earnings is $13,000.

8 0
2 years ago
Bronn and Jaime make a written contract where Jaime will sell Bronn his armor and sword for $1,200.
satela [25.4K]

Answer: Mirror image rule

Explanation:

It should be noted that the contract formation defenses are fraud, illegality, incapacity, unconscionability, duress and statute of Frauds.

The mirror image rule is not among the defense to the formation of w contract. It implies that an offer should be accepted with no changes made to the offer.

8 0
3 years ago
4. What is one thing you can do to help remember a new business contact? Write
Zanzabum

Answer:

Explanation:

c:what type of business the person is in

that is the only logical answer lol

hope it helps

3 0
3 years ago
At the present time, Perpetualcold Refrigeration Company (PRC) has 10-year noncallable bonds with a face value of $1,000 that ar
Assoli18 [71]

Answer:

The correct answer is 4.33%(approx)

Explanation:

According to the scenario, the given data are as follows:\

Face value = $1,000

Market price = $1,278.41

Coupon Rate = 11%

So Coupon Payment = $110

Years to maturity = 10 years

So, we can calculate the after tax cost of debt by using following method:

After Tax Cost of Debt = YTM × ( 1 - Rate of Tax)

Where, YTM = \frac{C + \frac{F - P}{T} }{\frac{F + P}{2} }

So, by putting the following value, we get

YTM = 0.0721

So by putting the value in formula, we get

After Tax Cost of Debt = 0.0721 × ( 1 - 0.4)

= 4.33% (approx)

6 0
3 years ago
If you own a small retail shop and you put ads in the local​ paper, put flyers on doors in every​ neighborhood, and buy billboar
statuscvo [17]

Answer:

The correct option is A

Explanation:

Mass marketing is the kind of market approach, in which the business or the firm decides to ignore or disregard the differences in the market segment  and reconsider the full market with the one approach or the strategy, that supports the broadcasting idea, so that it will reach to the huge number of people.

This kind of marketing is the one which is a point of convergence on the newspapers, radio and television as the media used to approach the audience. So, it is engaging or involving in the mass marketing.

4 0
2 years ago
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