1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
dangina [55]
3 years ago
13

If revenues are greater than total variable costs of production but less than total costs, a firm A) earns a profit. B) suffers

a loss. C) breaks even. D) shuts down.
Business
2 answers:
vesna_86 [32]3 years ago
8 0

Answer:

C) breaks even.

Explanation:

Cost-volume-profit analysis is also known as the break even analysis, it is an important tool in predicting the volume of activity, the costs to be incurred, the sales to be made, and the profit to be earned is. It is used to determine how changes in differing levels of activities such as costs and volume affect a company's operating income and net income.

Hence, if revenues are greater than total variable costs of production but less than total costs, a firm breaks even because the amount of money being generated is greater than the cost of running the business.

Colt1911 [192]3 years ago
5 0

Answer: B) suffers a loss.

Explanation:

If revenue is less than total costs, it means that the company is incurring losses because profit is calculated by deducting costs from revenue.

Just because the variable costs are being covered does not mean that the company will make a profit. All costs need to be covered for profit to be made. If the Average variable costs become more than the average revenue, the company should shutdown.

You might be interested in
All the following were true of the American economy under Cotton Kingdom EXCEPT a the South reaped all the profits from the cott
Lubov Fominskaja [6]

Answer:

a) the South reaped all the profits from the cotton trade.

Explanation:

Cotton grown in the southern states of the US helped to start the industrial revolution in the United Kingdom and northern states in the US. Even though cotton was not grown in northern states, the factories that processed cotton were located there. The south provided the raw materials and the north provided the final processed goods.

4 0
3 years ago
Seojun acquired an activity several years ago, and in the current year, it generates a loss of $50,000. Seojun has AGI of $140,0
ahrayia [7]

Answer:

Seojun's Adjusted Gross income is $140,000.

Explanation: Adjusted Gross income(AGI) is a term used in Financial accounting to describe the total amount of gross income remaining after certain deductions have been made to the Gross income of a business entity over a given period of time.

Since Seojun is not a Material participant,the $50,000 loss can not be considered in calculating Seojun's Adjusted Gross income.

7 0
3 years ago
Lopez Corporation incurred the following costs while manufacturing its product.
grandymaker [24]

Answer:

$358,150

Explanation:

Cost of goods manufactured is calculated in a Schedule of Manufacturing Costs as follows :

Cost of goods manufactured = Beginning Work In Process + Total Manufacturing Costs - Ending Work In Process

where,

Total Manufacturing Costs :

Materials used in product              $124,260

Depreciation on plant                     $69,650

Property taxes on plant                   $21,750

Labor costs of assembly-line        $120,570

Factory supplies used                     $25,810

Total                                               $362,040

therefore,

Cost of goods manufactured = $13,700 +   $362,040 - $17,590 = $358,150

8 0
3 years ago
thomas owes $438 on his credit card and was unable to pay more than the minimum payment of $20. unfortunately he mailed the paym
Kazeer [188]

Answer:

$575.82.

Explanation:

Since Thomas owes $ 438 on his credit card, but only paid the minimum of $ 20, his debt is now $ 418 (438 - 20). A late fee of $ 39 will be added to this value, which will raise said sum to $ 457 (418 + 39). In turn, the interest rate for unpaid card balances is 26% per month. Therefore, next month his balance will be $ 575.82 (457 x 1.26).

7 0
3 years ago
You are evaluating your company’s segmentation approach and discover an important missing condition. They have measured their ta
zysi [14]

Answer:

Profitability

Explanation:

It is not enough that our target market is reachable, stable, cost-effective, and measurable. We also need to measure how profitable the market is. We know that our major aim of doing business is to make profit, therefore the profitability of the market must be measured as well.

6 0
3 years ago
Read 2 more answers
Other questions:
  • Elijah is a warehouse production manager and has been assigned a complex project that might result in lengthy delays. in order t
    9·1 answer
  • 1 Madison Harris, the owner, invested $7,800 cash and $34,800 of photography equipment in the company in exchange for common sto
    5·1 answer
  • You plan to invest $2,500 in a money market account which will pay an annual stated interest rate of 8.75 percent, but which com
    6·1 answer
  • The freedom to make your own decisions can be limited if the business you choose is a
    13·1 answer
  • Soar Incorporated is considering eliminating its mountain bike division, which reported an operating loss for the recent year of
    7·1 answer
  • You have a better chance at success in the business world when your interest and personality match the career choice. True False
    8·2 answers
  • Jameson purchased an alarm system for his car during a promotion. He considered the price after the promotion to be very attract
    14·1 answer
  • So, if you find that revenue goes up when you use an elasticity of 2 to estimate the effect of changing the fee from $8 to $16,
    14·1 answer
  • Fe2O3 + 3 CO → Fe + 3 CO2
    5·1 answer
  • John paid $60,000 to replace the roof on a warehouse he used in his business. In addition, he spent $12,500 to demolish and remo
    15·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!