• 2022-06-15
    A firm that shuts down temporarily has to pay
    A: its variable costs but not its fixed costs.
    B: its fixed costs but not its variable costs.
    C: both its variable costs and its fixed costs.
    D: neither its variable costs nor its fixed costs.
  • B

    内容

    • 0

      Werth Company produces tie racks. Its estimated fixed costs for the year are $288,000, and the estimated variable costs per unit are $14. Werth expects to produce and sell 60,000 racks at a price of $20 per unit. How many units will be sold at breakeven? A: 48,000. B: 3,600. C: 14,400. D: 20,571.

    • 1

      A company with a HIGH operating leverage ( )经营杠杆率高的公司( ) A: Has an equal proportion of fixed and variable costs 固定成本和可变成本的比例相等 B: Has relatively more risk than a company with low operating leverage比经营杠杆率低的公司风险高 C: Has relatively more fixed costs than variable costs 固定成本相对高于可变成本 D: Has relatively more variable costs than fixed costs 与固定成本相比,其可变成本相对更多

    • 2

      Suppose a Holiday Inn hotel has annual fixed costs applicable to its rooms of $1.2 million for its 300-room hotel, average daily room rents of $50, and average variable costs of $10 for each room rented. It operates 365 days per year. The amount of net income on rooms that will be generated if the hotel is completely full throughout the entire year is: A: a. $(1,188,000) B: b. $4,275,000 C: c. $3,180,000 D: d. $5,475,000

    • 3

      Who looks at the company’s costs and its profits

    • 4

      Variable costs are costs that change with the level of production.