Carlos Gonzalez Owns a Small Manufacturing Company That Makes Ventilation

question 286

True/False

Carlos Gonzalez owns a small manufacturing company that makes ventilation systems used in the construction of office buildings.As the U.S.continues to be involved in wars around the globe,Carlos may notice that his business will be growing more slowly in the future as more money continues to be put into the war effort.
The war in Iraq has drawn billions of dollars from the American economy.Most companies have lost workers to the armed forces and have grown more slowly as money has been diverted to the war effort.

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Definitions:

Profit Ratio

A financial metric that measures the amount of profit generated by a business relative to aspects of its operations, such as sales.

Break-even Sales

The amount of revenue required to cover total fixed and variable costs, resulting in a profit of zero.

Unit Selling Price

The price for which a single unit of a product is sold, not including any additional fees or charges.

Fixed Costs

Expenses that do not change in response to the level of goods or services produced by the business, such as rent or salaries.