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The Annual Fixed Cost for an Inspecting and Profiling Web

question 2

Essay

The annual fixed cost for an inspecting and profiling web controller manufacturing company are $44,000, and the variable costs are $38 per unit. If the selling price per unit is p = 495 - 0.57X, what is the company's range of profitable demand?


Definitions:

Prepaid Insurance

An asset account that represents insurance paid in advance, which is not yet expired and thus not yet an expense.

Owner's Capital

The equity in a firm attributable to the owner, reflecting the amount invested by and the earnings retained for the business owner.

Accounts Receivable

Monies owed to a company by customers for sales made on credit that are recorded as assets on the balance sheet.

General Journal

A foundational accounting record that keeps chronological entries of a company's transactions.

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