Historically, Electricity Has a $500,000 Fixed Component and 4% of Sales

question 60

Multiple Choice

Historically, electricity has a $500,000 fixed component and 4% of sales variable component. Next year's sales are forecasted to be $10,000,000. The electricity budget would be

• A) $1,000,000.
• B) $750,000.
• C) $1,200,00.
• D) $900,000.

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Definitions:

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Courts of the first level in the federal judicial system of the United States, where civil and criminal cases under federal statutes are tried.

Liquidation

The process of converting a company's assets into cash to pay off creditors before closing the business.

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Also known as Chapter 7 bankruptcy, it involves the liquidation of a debtor's non-exempt assets to pay creditors.

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Laws passed by the national government of the United States that apply throughout the country.