Teams in an open league, and lower-division teams are potential competitors of teams in higher divisions because teams regularly switch leagues through promotion and relegation.
Capability competition is those competitors who do the equal component that you and goal the same sorts of customers, however, are not promoting to your marketplace region and are not probable to achieve this. They may be your competition in the event that they are determined to go into, however, both don't have the infrastructure or have chosen to ignore your region.
To discover who your competitors are, ask your clients wherein they came from or in the event that they've used other groups within the beyond. you could additionally ask them why they switched to your commercial enterprise. that is a common query in many industries.
Businesses need to recognize who their opposition is, and what they are doing or have already attempted to do, so they can find out developments and strategies that they could use to their advantage. Often, a real gain from competitor analysis is mastering what your competition is doing earlier than attempting something new yourself.
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GDP is defined as the Question 27 options: value of all goods and services produced within a country in a given period of time. value of all goods and services produced by the citizens of a country, regardless of where they are living, in a given period of time. value of all final goods and services produced within a country in a given period of time. value of all final goods and services produced by the citizens of a country, regardless of where they are living, in a given period of time.
GDP is defined as the value of final goods and services produced within a country in a given period.
Gross domestic product (GDP) is the dollar amount for all finished products and services produced inside a nation's boundaries in a given year. It is the sum of all final commodities and services produced in a certain economy.The total private and public consumption, government expenditures, investments, increases in private inventories, paid-in building expenses, and the foreign balance of trade are all included in the computation of a nation's GDP.
What is GDP and GNP ?
The value of the final domestic goods and services generated inside a country's boundaries is known as the gross domestic product (GDP). The value of all finished goods and services owned by a nation's citizens, regardless of whether those goods were made in that nation, is what is known as its gross national product (GNP).Learn more about gross domestic product (GDP). brainly.com/question/14810510
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When past experiences are insufficient and the risk of making a wrong purchase decision is high, a consumer is more likely to use ___________________ for information. Group of answer choices
the correct answer to be filled in the blank is external research.
external research-
The external search is made from elements: an internet search and a visible search. The visual search is basically a purchasing trip. In the past clients might also additionally have extensively utilized some form of directory as a search tool, however this has in large part been outmoded with the aid of using the Internet. The internet and visual search may be together inclusive or exclusive. Once you've been noticed you want to ensure that the method of comparing and buying the services or products is as easy as possible. clients might not want to provide their credit card information to a domain that they may be unusual with, ensure the buying method is appropriate, many supermarkets now have self-service checkouts to lessen waiting times.
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3. The fraud at Enron is one of many major financial statement frauds that have occurred in recent years (Qwest, Global Crossing, WorldCom, etc.). What are some factors that could explain why the falsifying of financial statements is occurring so frequently
Business owners may manipulate the accounts or falsify of financial statement to make the company look healthier to investors or lenders. They can do this by either inflating income and asset values, or underplaying the company's debts and liabilities.
False financial statement The lack of standardized accounting standards. Along with the structure of management incentives, there are other factors in play that appear to contribute to an environment where fraud is almost commonplace of financial statement . Conflicts of interest relationship between companies and accounting firms and result in false financial statement .Learn more about financial statement here:
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On July 1, Hartford Construction purchases a bulldozer for $228,000. The equipment has a 9-year life with a residual value of $16,000. Hartford uses the units-of-output method of depreciation, and the bulldozer is expected to yield 26,500 operating hours. What is the depreciation expense per hour of operation
The depreciation expense per hour of operation is $8 per hour
a. Depreciation expense per hour:
= (Cost - salvage value) / Expected operating hours
= (228,000 - 16,000) / 26,500
= $8 per hour
b. First year depreciation: Second year depreciation:
= 1,250 * 8 = 2,755 * 8
= $10,000 = $22,040
Third year depreciation:
= 1,225 * 8
= $9,800
Journal entries
Date Account Title Debit Credit
June 30, Year 1 Depreciation $10,000
Accumulated Depreciation $10,000
Date Account Title Debit Credit
June 30, Year 2 Depreciation $22,040
Accumulated Depreciation $22,040
Date Account Title Debit Credit
June 30, Year 3 Depreciation $9,800
Accumulated Depreciation $9,800
Your question is incomplete, but most probably your full question was:
On July 1, Hartford Construction purchases a bulldozer for $228,000. The equipment has a 9-year life with a residual value of $16,000. Hartford uses the units-of-output method depreciation, and the bulldozer is expected to yield 26,500 operating hours.
Required:
(a) Calculate the depreciation expense per hour of operation.
(b) The bulldozer is operated 1,250 hours in the first year, 2,755 hours in the second year, and 1,225 hours in the third year of operations. Journalize the depreciation expense for each year.
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When firms sell their products overseas with little or no change to the products, they may increase the expropriation of intellectual property and increase the risk of piracy. This is considered a serious disadvantage when pursuing a(n) ________ strategy. Question 7 options:
The strategy is known as international strategy.
Most firms begin their worldwide growth with an international strategy, which includes exporting or importing goods and services while keeping a head office or offices in their native country. As a firm, global expansion does not have a one-size-fits-all approach.
Companies might decide to invest more in their target markets as they expand and scale. A successful worldwide company strategy concentrates on a single point of contact while exporting goods and services all over the world.
While no two global firms are same, it does imply that multinational enterprises must take a big-picture, standardized approach to their exports and imports, even if their operations are tiny.
Therefore, the blank will be filled by international strategy.
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When a Central Bank takes action to decrease the money supply and increase the interest rate, it is following: a loose monetary policy. a contractionary monetary policy. a expansionary monetary policy. a quantitative easing policy.
When a Central Bank takes action to decrease the money supply and increase the interest rate, it is known as a contractionary monetary policy.
Modern central banks' influence over higher base interest rates or other mechanisms that expand the money supply are what propel contractionary monetary policy. By reducing the amount of active money circulating in the economy, inflation is to be decreased.
In order to raise interest rates, reduce investment and consumption, and increase savings rates, a contractionary monetary policy includes reducing the money supply.
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A Principal Investigator has submitted a new proposal to the NIH. Six months ago he accepted an invitation by the University of Texas Health Sciences Center at San Antonio (UTHSCSA) to do a presentation of his recent findings on breast cancer. UTHSCSA paid the Investigator $1000 to do the presentation and paid his travel expenses of $700. Under federal and UNM HSC COI Policy, the Investigator will need to do a financial conflict of interest disclosure of this information when he submits for this proposal to the NIH. True False
It is a true statement that the Investigator will need to do a financial conflict of interest disclosure of this information when he submits for this proposal to the NIH.
What is a financial conflict of interest?This conflict of interest is one that exists when a recipient's designated official(s) determines that an investigator's significant financial interest could significantly affect the conduct or reporting of the PHS-funded research.
Therefore, It is a true statement that the Investigator will need to do a financial conflict of interest disclosure of this information when he submits for this proposal to the NIH.
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Merchandise inventory is Multiple Choice Reported on the balance sheet under plant and equipment Reported on the income statement as an expense Products a company owns for resale to customers Included on a service company's balance sheet Includes supplies
Merchandise Inventory is the product that a company owns for reselling to the customers in the market.
Option C is the correct answer.
What is reselling?Reselling is one of the activities applied by the production company in disposing of the goods more than one time in the consumer market.
When the goods are sold again by the sellers and the retailers to the customers, they it is treated as merchandise inventory. It has the same nature similar to the closing inventory being reported on the balance sheet of the company under the current assets.
Therefore, the explanation provided in Option C would describe the merchandise inventory.
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The old Gross National Product (GNP) measurement was replaced by the newer Gross Domestic Product (GDP) definition in 1992. What was one of the biggest differences between the two
The biggest differences between the two are that GDP no longer counted foreign activities of American businesses located in other nations.
GDP is a hallmark of the nearby/countrywide economy, GNP represents how it is nationals are contributing to the country's economy. For instance, united states of America-based information reporter sent to South Korea and sends her Korean earnings home, they make contributions undoubtedly to the united states' GNP. GDP excludes goods and offerings which can be produced out of doors in the economic system while GNP excludes items and offerings which might be produced by way of foreigners living inside u. s . a .. GDP measures best home manufacturing whereas GNP measures handiest the manufacturing by using nationals.
GDP seems for the amount of monetary activity within a state's economic system, whilst GNP appears on the price of the economic hobby generated with the aid of the state's human beings. which means GNP will matter to the monetary activities of expatriates and different residents out of doors u. s. a .'s borders but GDP will now not. GDP will recall the activities of noncitizens within those borders, however, GNP will now not.
GNP can be calculated by adding intake, authorities spending, capital spending with the aid of agencies, internet exports, and net income with the aid of domestic citizens and companies from distant places investments. This discern is then subtracted from the internet profits earned with the aid of foreign citizens and agencies from home investment.
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Ira orally agrees to buy a unique collection of sports memorabilia for $1,000 from Jane and sends her $250 as a down payment. When Ira sends her the rest of the price, Jane refuses to ship Ira the collection. Ira should seek Group of answer choices specific performance. damages. reformation. rescission.
Ira should seek specific performance.
A particular remedy called specific performance is utilized by courts when no other option, such monetary compensation, will fully satisfy the other party. The court will choose that option instead if it will put the injured party in the same situation as if the contract had been fully completed.A court may order a party to carry out a specific conduct, such as completing the contract's performance, as a form of equitable relief under the law of contracts.If damages are a suitable alternative, it is normally not accessible but is typically available in the sale of land law. Contracts for personal services nearly seldom allow for specific performance.Thus this is the answer.
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What is the name of the document that companies use to report quarterly financial results?.
why might alexandria choose a local movie theater when she could see the same movies for less at a corporate establishment
It can be inferred that Alexandria may exhibit the above traits because of her philosophy of always helping local businesses. This may come from the understanding that local businesses support and create more employment.
Why is employment important?Employment is critical because it ensures that aggregate demand is constantly growing.
Without aggregate demand, there won't be supply and the economy collapses.
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____________ reduces the number of levels in an organization's job structure. Multiple Choice Competency-based pay Red-circling Broadbanding Job evaluation Green-circling
The correct option is Delayering. It reduces the number of levels in an organization's job structure.
What is delayering?Delayering refers to ways of removing one or more levels of hierarchy from am organizational structure inorder to make it better. It is a way to flatten the organization's structure.
Layering is important because it helps an organization function better.
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The word ____________ refers to promotional clutter, and to other distracting stimuli that cause consumers to lose attention or forget specific content in a marketing message.
The word Noise refers to promotional clutter, and to other distracting stimuli that cause consumers to lose attention or forget specific content in a marketing message.
Sound is described as vibrations that journey thru the air or another medium that can be heard after they attain someone's or animal's ears. Noise is described as an unwanted sound. In engineering, noise has the additional connotation of signals varying over the years which means, that sound connotes meaningful signals.
Noise is defined as any undesirable or disagreeable sound and is regularly disregarded without a doubt as a “nuisance.” but, noise can end up dangerous whilst it interferes with a toddler's normal sports, such as napping or speaking, or disrupts or diminishes a child's fitness or exceptional of existence.
But, repeated exposures to loud noise can cause permanent tinnitus and/or listening loss. Loud noise can create physical and mental pressure, lessen productivity, intrude on verbal exchange and awareness, and contribute to administrative center injuries and injuries by making it tough to hear warning signals.
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6. Outline 4 circumstances under which some human wants canbe fully satisfied
Generally, the human wants can never be fully satisfied because its requires more resources whereas the resources are limited.
What is a human wants?This refers to the desires, aspirations and motives of humans that can be satisfied with goods and services.
For instance, the yearning for food, shelter, clothing are example of an economic human wants.
It is also accepted that the human wants are never truly satisfied because they are endless, even though these wants can be temporarily satisfy, they will always reoccur.
Therefore, the human wants can never be fully satisfied.
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Nikita reviews job applicants and screens their applications into thee piles: highly qualified, qualified, and not qualified. She then lets the hiring manager see those who are highly qualified and qualified. This is part of
Nikita reviews job applicants and screens their applications into thee piles: highly qualified, qualified, and not qualified. She then lets the hiring manager see those who are highly qualified and qualified. This is part of selection.
What is the difference between job analysis and work analysis?Work analysis is thorough and systematic, much like job analysis.However, the result is different. While work analysis finds potential new occupations and the need to reorganize and restructure, job analysis highlights tasks and duties.What is job analysis process?Work analysis is the methodical process of compiling all relevant data on a particular job, such as skill requirements, roles, duties, and procedures, in order to produce a reliable job description.What is a job analysis example?During a job analysis, expected performance levels are frequently stated.Performance appraisal forms can be created using data from a job analysis. A form that lists the tasks or behaviors of the job and specifies the desired performance level for each would be an example of one based on a job analysis.Learn more about selection here:
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______ uses quantitative techniques, and often automated trading systems, to seek out many temporary misalignments among securities. A. Triangular arbitrage B. Locational arbitrage C. Statistical arbitrage D. Covered interest arbitrage
The answer is Statistical Arbitrage.
Statistical arbitrage is a computationally intensive approach to algorithmically trading financial market assets such as equities and commodities.
It is also called Stat Arb.
In other words, Statistical arbitrage is a group of trading strategies employing large, diverse portfolios that are traded on a very short-term basis.
Hedge funds, mutual funds, and proprietary trading firms build, test, and implement trading strategies based on statistical arbitrage.
It is known as a deeply quantitative, analytical approach to trading, stat arb aims to reduce exposure to beta as much as possible. Where beta is market risk.
Hence, Statistical Arbitrage uses quantitative techniques, and often automated trading systems, to seek out many temporary misalignments among securities.
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An equitable remedy requiring exactly the performance that was specified in a contract; usually granted only when monetary damages would be an inadequate remedy and the subject matter of the contract is unique is called Group of answer choices rescission. specific performance. consequential damages. reformation.
An equitable remedy requiring exactly the performance that was specified in a contract is called OR Usually granted only when monetary damages would be an inadequate remedy and the subject matter of the contract is unique is called : Specific Performance.
What are equitable remedies ?
An equitable remedy is a contract remedy that restores the parties to the same position they would have been in if no breach of contract occurred. It is also called a "just" or "equitable" remedy. The most common equitable remedies are money damages, specific performance, and rescission.
What is the Specific Performance?Specific performance is an equitable remedy in the law of contract, whereby a court issues an order requiring a party to perform a specific act, such as to complete performance of the contract. It is typically available in the sale of land law, but otherwise is not generally available if damages are an appropriate alternative.
Specific performance is almost never available for contracts of personal service, although performance may also be ensured through the threat of proceedings for contempt of court.
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he Allowance for Doubtful Accounts T-account will have the ______ on the credit side. Multiple choice question. sales on account estimated bad debts from the adjusting entry write-offs of specific customers sales discounts and allowances
The Allowance for Doubtful Accounts T-account will have the write-offs of specific customers sales discounts and allowances on the credit side.
What is Doubtful Accounts?It lowers the value of an asset—in this case, the accounts receivable—the allowance for dubious accounts is referred to as a "contra asset."
The allowance, also known as a bad debt reserve, is management's projection of the amount of accounts receivable that customers will not pay.
Thus, option B is correct.
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When tires are taxed and sellers of tires are required to pay the tax to the government, Group of answer choices the price paid by buyers of tires decreases. the quantity of tires bought and sold in the market is reduced. there is a movement downward and to the right along the demand curve for tires. the demand for tires decreases.
The correct option is, the quantity of tires bought and sold in the market is reduced.
When tires are taxed and sellers of tires are required to pay the tax to the government?The amount of tires purchased and sold on the market decreases when tires are taxed and tire vendors are compelled to pay tax to the government. The loss of consumer and producer surpluses that are not accounted for in government revenue.When a tax is placed on a product the price paid by buyers?In general, taxes increase the price consumers pay, decrease the price sellers receive, and decrease the amount of goods sold. A tax must result in a deadweight loss if it is imposed on a good and sales volume is decreased.What is deadweight loss?The cost of market inefficiency, which happens when supply and demand are out of balance, is known as a deadweight loss.Deadweight loss, a term mostly used in economics, refers to any deficit brought on by an ineffective resource allocation.Learn more about taxed here:
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The owners of the newly created Colorado Steakhouse Corp. have conducted a SWOT analysis of its competition and sees a marketing opportunity for its new Colorado Steakhouse restaurant. They have developed its marketing plan to include the type of products it will sell, the location for the restaurant, and the pricing strategy it will use. Their plan includes a marketing objective to make a profit of 5% the first year of operation. So far, the owners of the restaurant have eliminated a key piece of the marketing plan, which is
The owners of the Colorado Steakhouse forgot to add the vital information to the Market plan regarding the fellow competitors to their market.
What is a Market Plan?A market plan is a part of the business plan of an organization in which the organization's goals, values, mission statement, budget, and tactics are all covered. It describes the approach a business will take to sell its goods to consumers.
What is a SWOT Analysis?SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, and so a SWOT analysis is a technique for assessing these four aspects of your business.
SWOT analysis is a tool that can assist you in identifying the current strengths of your business and developing a winning future strategy. SWOT can also reveal business issues that are hindering you or that, if undefended, your competitors could use against you.
It helps you to pinpoint your business's limitations and strengthsGives you better clarity on how to cope with these challenges, risky assumptions and to uncover dangerous blind spots about your organization's performanceMaking lists is a part of SWOT analysis, but there is also so much more! Your research and thought process as you start to develop one list, such "Strengths," will inspire ideas for the other categories (Weaknesses, Opportunities or Threats) and to build connections and contradictions which can be overcome.Therefore, the owners of the Colorado Steakhouse Corp. have conducted a SWOT analysis, but it hasn't included much about the Weakness and Opportunities part in its marketing plan.
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The owners of the Colorado Steakhouse restaurant have eliminated a key piece of the marketing plan ,which is: specifying how they will achieve their marketing objective.
What is a Market Plan?A market plan is a part of the business plan of an organization in which the organization's goals, values, mission statement, budget, and tactics are all covered. It describes the approach a business will take to sell its goods to consumers.
What is a SWOT Analysis?SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, and so a SWOT analysis is a technique for assessing these four aspects of your business.
SWOT analysis is a tool that can assist you in identifying the current strengths of your business and developing a winning future strategy. SWOT can also reveal business issues that are hindering you or that, if undefended, your competitors could use against you.
Therefore, the owners of the Colorado Steakhouse Corp. have conducted a SWOT analysis, but it hasn't included much about the specifying how they will achieve their marketing objective marketing plan.
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The shape of the production possibilities curve
usually has a concave-shape. What does say about
the factors of production when the production
possibilities curse is a straight line?
When the production possibilities curve is a straight line, opportunity costs are the same no matter how far you move along the curve.
What is production possibilities curve?The production possibilities curve (PPC) is a graph that shows the different combinations of output that can be produced with given available resources and technology.
The PPC curve usually have a concave shape not a straight line because there is always a cost involved in making a choice.
For example:- when the quantity of one good produced is higher and the quantity of the other is low, it is known as the opportunity cost.
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The law of demand states that, all else equal, price and quantity demanded are Group of answer choices directly related inversely related uniformly related horizontally related
the quantity demanded is inversely related to price is the answer to this question
The inverse relationship between price and demand
Therefore, the price of a product and the quantity required for this product are in the opposite relationship, as stipulated by the Law of Demand. The inverse relationship means that the higher the price, the lower the quantitative demand, and the lower the price, the higher the quantitative demand.
The law of supply and demand is the basis of modern economics. According to this theory, the price of a good is inversely proportional to its supply. That makes sense for many products. Because the more expensive it is, the fewer people can afford it and the less demand it has.
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Flash Card Inc. recently underwent a significant company-wide change that involved revision of its manufacturing and leadership processes. The result of this was a stronger emphasis on horizontal coordination. This level of change is referred to as:
This level of change is referred to as reengineering.
What is reengineering?Business process re-engineering (BPR) is an early 1990s business management method that focuses on the analysis and design of workflows and business processes within a company. BPR seeks to assist firms in fundamentally rethinking how they do business in order to improve customer experience, reduce operational costs, and compete on a global scale.BPR aims to assist businesses in significantly restructuring their organizations by focusing on the design of their business processes from the ground up. A business process, according to early BPR proponent Thomas H. Davenport (1990), is a sequence of logically related operations executed to produce a specific business objective.As the definition of reengineering itself states that BPR aims to assist businesses in significantly restructuring their organizations by focusing on the design of their business processes from the ground up.
Therefore, this level of change is referred to as reengineering.
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True or false: If the steps in a step-variable cost behavior pattern are large, the step-variable cost function may be approximated by a variable cost function without must loss in accuracy.
The statement in the question is : FALSE
What is a step-variable cost ?A step variable cost is a type of cost that varies with the level of activity, but is incurred at discrete points and it involves large changes. Hence If the steps in a step-variable cost behavior pattern are large, the step variable cost function cannot be approximated by a variable cost function without loss in accuracy because the variable cost behavior pattern is directly proportional to the variable cost function.
Hence we can conclude that The statement in the question is : FALSE
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Harvey Hotels has provided a defined benefit pension plan for its employees for several years. At the end of the most recent year, the following information was available with regard to the plan: service cost: $6.3 million, expected return on plan assets: $1.3 million, actual return on plan assets: $1.1 million, interest cost: $1.5 million, payments to retired employees: $2.1 million, and amortization of prior service cost (created when the pension plan was amended causing a drop in the projected benefit obligation): $1.2 million. What amount should Harvey Hotels report as pension expense in its income statement for the year
Pension expense of Harvey Hotels in its income statement for the year= $7.7 million .
Service cost= $6.3 million.
Interest cost= $1.5 million.
Amortization of prior service cost= $1.2 million.
Expected return on plan assets= $1.3 million.
Pension expense=?
Pension expense is decreased by amortization of net gain.
Pension expense= (Service cost+ Interest cost- Expected return on plan assets+ Amortization of prior service cost
= (6.3 +1.5 +1.2)-1.3 .
= 7.7 million.
Pension expense of Harvey Hotels in its income statement for the year= $7.7 million.
What is meant by income statements?An income statement shows a company's revenues, expenses and profitability over a period of time. It is also sometimes called a profit-and-loss (P&L) statement or an earnings statement. It shows your: revenue from selling products or services. Expenses to generate the revenue and manage your business.What is income statement and its purpose?An income statement's objective is to display a company's financial success over a specific time frame. It narrates the financial history of a company's operations. You may discover all of the revenue and expense accounts for a specific time period in an income statement.Learn more about income statement here:
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An employer hiring in a competitive labor market should hire additional labor as long as:.
An employer hiring in a should hire additional labor as long as the marginal revenue product (MRP) exceeds the wage rate.
What is competitive labor market?competitive labor market serves as one that alot of producer which compete with each other in the industry.
In this case, An employer hiring in a should hire additional labor as long as the marginal revenue product (MRP) exceeds the wage rate.
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The combination of product lines offered by a manufacturer is called the firm's: Group of answer choices product matrix. product mix. total product offer. product portfolio.
The combination of product lines offered by a manufacturer is called the firm's product mix.
What is a product mix strategy?
The total number of product lines and distinct goods or services that a business offers is its product mix. Alternatively known as product portfolio or product assortment. Product combinations differ amongst businesses.
Four main product mix strategies are as follows:
Expansion: A business adds more product lines or product depth (i.e., varieties) inside lines.Contraction: A business reduces the variety of its products to get rid of underperforming ones or to streamline the remaining ones.Change an Existing Product: A business makes improvements to an existing product rather than developing a brand-new one.Product differentiation: A corporation advertises a product as being a better option than a rival product without changing it in any manner.Learn more about product mix strategy here:
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Explain the check and balance of power between the legislative and executive branch when it comes to the power to make laws.
A statute may be subject to the President's veto in the executive branch, but with enough votes, the legislative branch can override the veto. The legislative branch has the authority to ratify presidential appointments, manage the budget, and impeach the president and force their resignation.
How can the executive branch restrain the legislative branch's authority?The ability to veto (override) legislation serves as a check on the power of the legislative branch by the executive branch. The President has three options when it comes to signing a bill into law that Congress has approved: signing it, not signing it, or vetoing it. The bill will be made into law whether it is signed or not.How do checks and balances restrict each branch's power?The Checks and Balances system is linked to the separation of powers in the US. Each part of government is given its own authority to check the other branches and prevent any one branch from becoming overly dominant thanks to the checks and balances system.
What are the legislative branch's safeguards?Federal legislation is subject to the presidential veto. Laws may be ruled unconstitutional by the Supreme Court. To pass laws, both houses of Congress must vote. limiting the legislative branch's authority
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Fixed costs including depreciation have increased at Leverage Inc., from $4 million to $5.3 million. Suppose that the company now breaks even on an accounting basis with sales of $20 million. What must be the break-even variable cost as a percentage of sales
The variable cost is 73.5%.
In economics, business, and especially cost accounting, the break-even point is the point at which total cost and total income are equal, i.e. "even." Although opportunity costs have been paid and capital has received the risk-adjusted, projected return, there is no net loss or gain, and one has "broken even." The breakeven point is stated to be reached in investment when the market price of an asset equals its initial cost.
Break even point is computed with the formula given below:
Break even point=Fixed cost/Contribution
Thus, the contribution =(5.3/20)
=0.265
=26.5%
Therefore, if sales is assumed to be 100%,contribution=Sales-Variable Cost
=100%-26.5%
= 73.5%
Hence, the variable cost is 73.5%.
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