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Micro Enterprises has the capacity to produce 10,000 widgets a month,and currently makes and sells 9,000 widgets a month.Widgets normally sell for $6 each,and cost an average of $5 to make,including fixed costs.The monthly fixed costs are $18,000.Coyote Corp.has offered to buy 1,000 widgets at $4 each. What other factors should be taken into consideration?
Insurance Expense
The cost allocated to a period for holding insurance policies, protecting against various risks.
Income Statement
A financial statement that shows a company's revenues and expenses over a specific period of time, resulting in a net income or loss.
Salaries Expense
The total amount paid to employees for services rendered during a specific period, recorded as an expense in financial statements.
Salaries Payable
A liability account that records the amounts owed to employees for work performed but not yet paid.
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