Blog

If a company increases fixed costs, then the breakeven point will be lower.

Sunk costs are irrelevant to decision making.

Bricka Manufacturing produces 5-gallon water jugs. Total manufacturing costs are $200,000 when 20,000 holders are produced. Of this amount, total variable costs are $60,000. what are the total production costs when 30,000 holders are produced? (Assume both levels are within the relevant range)

A higher required rate of return would be appropriate if the company 

Zero-based budgeting requires managers to justify every additional dollar they put in the budget compared to last year.

Suppose that a function f{“version”:”1.1″,”math”:”f”} has a vertical asymptote x=2{“version”:”1.1″,”math”:”x=2″}, an oblique asymptote, passes through the origin and the following sign lines for the first/second derivatives. Select all of the statements that are true:

Which of the following is a nonlinear cost function?

Suppose that a function is 1)  continuous and differentiable on the interval 0,∞{“version”:”1.1″,”math”:”0,∞”} 2)  the only asymptote on the graph is x=0{“version”:”1.1″,”math”:”x=0″} 3)  the graph has a minimum when x=1{“version”:”1.1″,”math”:”x=1″} 4)  the graph is concave up for all x{“version”:”1.1″,”math”:”x”} in the domain   Write three conclusions you can make about the graph in terms of information that you can obtain from the first and second derivatives.

Sales total $400,000 when variable costs total $300,000 and fixed costs total $50,000. The breakeven point in sales dollars is ________.

Refer to the previous question. What is the accounts receivable balance on December 31?