In Purchasing an Automobile, There Are a Number of Variables

question 45

Short Answer

In purchasing an automobile, there are a number of variables to consider. The color of the car is an example of a(n)______ variable.

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Definitions:

Variable Costs

Costs that fluctuate in direct relation to the level of production or volume of operations in a business.

Fixed Costs

Costs that remain constant and do not change based on the volume of goods or services a business produces.

Required Sales

The amount of sales a company needs to achieve in order to cover its costs and reach a desired level of profit.

Net Income

The company's earnings following the deduction of all taxes, expenses, and costs from its total revenue.