Joe has $100 a week to purchase either computer online service or film for his other hobby,photography.The price of on-line service is $5 an hour while the price of film is $10 a roll.Draw Joe's budget line in the figure below.
Definitions:
Fixed Manufacturing Expenses
These are the expenses that remain constant regardless of the amount of goods produced, including rent for factory buildings or lease payments for manufacturing equipment.
Fixed Selling
Expenses that remain constant regardless of the level of sales or production, such as salaries of sales managers and rental charges of retail spaces.
Eliminating Product
The process of removing a product from a company's offerings, often due to low sales, obsolescence, or strategic repositioning.
Segment Margin
A segment’s contribution margin less its traceable fixed costs. It represents the margin available after a segment has covered all of its own traceable costs.
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