According to the Information Provided, If Gertrude Is a Price

question 54

Multiple Choice

According to the information provided, if Gertrude is a price taker in the crew market she has only to decide:

• A)how many crew members to hire
• B)the wage to pay the crew she hires
• C)the size of the boats others use to catch tuna
• D)the price of the tuna she will catch

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Definitions:

CVP Analysis

Cost-Volume-Profit Analysis is a technique in managerial accounting that examines the impact of cost and volume changes on a company’s operating and net income.

Cost-volume-profit

An analysis to determine how changes in costs and volume affect a company's operating income and net income.

Fixed Costs

Costs that do not change in total despite fluctuations in the volume of goods or services produced or sold.

Variable Costs

Charges that fluctuate according to the degree of business operations.