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Loren LLC is a small bicycle store that competes effectively with much larger companies since it focuses exclusively on selling bicycles for senior citizens and orthopedic patients. The company has been successful since it has:
Fixed Costs
Expenses that do not change with the level of production or sales activities within a certain range or period.
Weighted Average
A calculation that takes into account the varying weights of different items in a dataset, commonly used in inventory costing.
Unit Selling Price
The price that a customer pays for one unit of a product or service.
Weighted Average
A calculation that takes into account the varying degrees of importance of the numbers in a data set, giving weight to some numbers more than others.
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