When the firm is not producing any goods. Fixed costs like rent and utilities would remain present and constant, but variable costs such as raw materials and other factors of production would cease.
To work out the break even point you have to do this equation → (fixed cost)÷(selling price−variable cost). For example the fixed cost is $10000, the selling price is $17 and the variable cost is $12. So you would do → (10000)÷(17−12) which would equal $2000.
Total fixed costs do not vary as volume levels change within the relevant range.
Fixed capital is something that is need for long term ...working capital is the capital or funds for managing and carrying out day to day operations. Apart from this a important point to note is that usually fixed assets or long term assets of the company are bought from fixed capital. Buying short term current assets from funds for long term would be illogical.
The lowest number. An average would be somewhere around the middle.
This would be having exactly enough, but not too much of the product in demand. So you would be maximizing profit!
To work out the break even point you have to do this equation → (fixed cost)÷(selling price−variable cost). For example the fixed cost is $10000, the selling price is $17 and the variable cost is $12. So you would do → (10000)÷(17−12) which would equal $2000.
Total fixed costs do not vary as volume levels change within the relevant range.
Fulcrum * * * * * The fulcrum is the fixed point. The bar is a lever. Admitedly, it would help if questions were asked properly.
In Quadrant I a point would lie if its abscissa and ordinates are equal.
In Quadrant I a point would lie if its abscissa and ordinates are equal.
No. If they were equal, then there would be no point in having the minus sign!
To determine the break even sales in units, divide total fixed costs by the contribution margin per unit. Contribution margin per unit equals sales price less variable costs. Here, contribution margin per unit equals $30 each (i.e. $40 less $10). Total fixed costs equal $120,000. Therefore, the break even sales in units would equal $120,000 / $30 or 40,000 units.
Well if you're given the total cost of 0 units, then that would be your fixed cost as FC doesn't vary with any change in the total output produced (quantity).
One quarter of a total would be equal to the fraction 1/4 and the decimal 0.25.
No. If they were then there would be no point in having a negative.
It would be the reference point. Hope this helps :)
The 2nd quadrant and 4th quadrant would be where a point would lie if it's abscissa and ordinate are numerically equal but of opposite signs.