Asked by
Dylan Smith
on Oct 12, 2024Verified
If you had fixed costs of $100,000 and variable costs of $10,000,in the long run you would stay in business if total revenue were equal to,or greater than
A) $0.
B) $10,000.
C) $100,000.
D) $110,000.
Fixed Costs
Fixed expenses unaffected by variations in production volume or sales, like lease payments, employee salaries, and insurance fees.
Variable Costs
Expenses that vary directly with the volume of production or services a company offers, including labor and materials.
Total Revenue
A company's aggregate income from product sales and service charges within a set timeframe.
- Understand the nuances distinguishing fixed from variable expenses.
- Know the break-even and shutdown points in both short run and long run scenarios.
Verified Answer
CM
Learning Objectives
- Understand the nuances distinguishing fixed from variable expenses.
- Know the break-even and shutdown points in both short run and long run scenarios.