Explain the importance of distinguishion between fixed and variable costs.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 5, Problem 1E

To determine

Explain the importance of distinguishion between fixed and variable costs.

Expert Solution & Answer

Explanation of Solution

The earning and income of a company will be affected by fixed and variable costs. Individuals distinguish between fixed and variable costs for the same purpose. That is, to clearly calculate the earnings and income of a company, individuals will distinguish between fixed and variable costs. Fixed cost is the cost that will remain constant and known as the initial investment or spending of a firm to start the business. The variable cost includes all expenditures of the company, and it will vary with varying production. For a clear calculation of earnings and losses, individuals will distinguish between fixed and variable cost.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Assume that an economy has an inflationary gap. Compare the use of fiscal policy with the use of monetary policy to remove the gap. Assume a closed economy. Use graphs to illustrate.

Suppose Person A is looking for a health insurance plan on Oregon's health insurance marketplace and they find one with the following details: Monthly Premium: $331 Deductible: $5,000 Primary care visit to treat injury or illness: $35 copay Imaging (CT/PET Scans MRIs): 40% coinsurance after deductible Ambulance: 40% coinsurance after deductible Inpatient hospital stay: 40% coinsurance after deductible Suppose further that Person A purchases this plan and it takes effect in January 2022. The cost Person A pays per month for this health insurance is equal to _. Person A must pay. before coinsurance kicks in. 0000 $35; $5,000 $35; $331 $331; $5,000 $331; $35 Multiple Choice 1 point Suppose Person A is looking for a health insurance plan on Oregon's health insurance marketplace and you find one with the following details: Monthly Premium: $331 Deductible: $5,000 Primary care visit to treat injury or illness: $35 copay Imaging (CT/PET Scans MRIs): 40% coinsurance after deductible Ambulance:…

Use the figure below to answer the following question. Point X and Y represent two non-ideal contracts that the individual is faced with buying. From this information, you can conclude that if given the option between points B and Y the individual would prefer: Utility A у в 0000 UKI) E[Bp IH point B- the actuarially fair and full contract point Y-the actuarially unfair but full contract point Y- the actuarially fair, but partial contract point B- the actuarially fair, but partial contract income

Answer 2

Question

Chapter 5, Problem 1E

To determine

Explain the importance of distinguishion between fixed and variable costs.

Expert Solution & Answer

Explanation of Solution

The earning and income of a company will be affected by fixed and variable costs. Individuals distinguish between fixed and variable costs for the same purpose. That is, to clearly calculate the earnings and income of a company, individuals will distinguish between fixed and variable costs. Fixed cost is the cost that will remain constant and known as the initial investment or spending of a firm to start the business. The variable cost includes all expenditures of the company, and it will vary with varying production. For a clear calculation of earnings and losses, individuals will distinguish between fixed and variable cost.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 5, Problem 1E

To determine

Explain the importance of distinguishion between fixed and variable costs.

Expert Solution & Answer

Explanation of Solution

The earning and income of a company will be affected by fixed and variable costs. Individuals distinguish between fixed and variable costs for the same purpose. That is, to clearly calculate the earnings and income of a company, individuals will distinguish between fixed and variable costs. Fixed cost is the cost that will remain constant and known as the initial investment or spending of a firm to start the business. The variable cost includes all expenditures of the company, and it will vary with varying production. For a clear calculation of earnings and losses, individuals will distinguish between fixed and variable cost.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 5, Problem 1E

To determine

Explain the importance of distinguishion between fixed and variable costs.

Expert Solution & Answer

Explanation of Solution

The earning and income of a company will be affected by fixed and variable costs. Individuals distinguish between fixed and variable costs for the same purpose. That is, to clearly calculate the earnings and income of a company, individuals will distinguish between fixed and variable costs. Fixed cost is the cost that will remain constant and known as the initial investment or spending of a firm to start the business. The variable cost includes all expenditures of the company, and it will vary with varying production. For a clear calculation of earnings and losses, individuals will distinguish between fixed and variable cost.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 5, Problem 1E

To determine

Explain the importance of distinguishion between fixed and variable costs.

Expert Solution & Answer

Explanation of Solution

The earning and income of a company will be affected by fixed and variable costs. Individuals distinguish between fixed and variable costs for the same purpose. That is, to clearly calculate the earnings and income of a company, individuals will distinguish between fixed and variable costs. Fixed cost is the cost that will remain constant and known as the initial investment or spending of a firm to start the business. The variable cost includes all expenditures of the company, and it will vary with varying production. For a clear calculation of earnings and losses, individuals will distinguish between fixed and variable cost.

Answer 6

Chapter 5, Problem 1E

To determine

Explain the importance of distinguishion between fixed and variable costs.

Expert Solution & Answer

Explanation of Solution

The earning and income of a company will be affected by fixed and variable costs. Individuals distinguish between fixed and variable costs for the same purpose. That is, to clearly calculate the earnings and income of a company, individuals will distinguish between fixed and variable costs. Fixed cost is the cost that will remain constant and known as the initial investment or spending of a firm to start the business. The variable cost includes all expenditures of the company, and it will vary with varying production. For a clear calculation of earnings and losses, individuals will distinguish between fixed and variable cost.

Answer 7

Chapter 5, Problem 1E

To determine

Explain the importance of distinguishion between fixed and variable costs.

Answer 8

Expert Solution & Answer

Explanation of Solution

The earning and income of a company will be affected by fixed and variable costs. Individuals distinguish between fixed and variable costs for the same purpose. That is, to clearly calculate the earnings and income of a company, individuals will distinguish between fixed and variable costs. Fixed cost is the cost that will remain constant and known as the initial investment or spending of a firm to start the business. The variable cost includes all expenditures of the company, and it will vary with varying production. For a clear calculation of earnings and losses, individuals will distinguish between fixed and variable cost.