Explain Whether Each of the Following Is a Fixed Cost

question 303

Essay

Explain whether each of the following is a fixed cost or a variable cost for Damian Dandridge's tattoo parlor.
a.The payment he makes to buy tattoo ink.
b.The wages he pays his employees.
c.The $500-per-month payment he makes to advertise his shop on highway billboards.
d.The lease payment he makes to the landlord who owns the building where his shop is located.
e.The payment he makes on his liability insurance policy.

Recognize the importance of equitable principles in contract law, including undue influence, misinterpretation, and the unconscionable bargain doctrine.

Understand the main sources of household income.

Describe the impact of economic conditions on transfer payments.

Identify the primary components of personal income in the United States.

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Definitions:

Fixed Assets

Long-term tangible assets that are used in the operations of a business and are not expected to be converted to cash within a year.

Dutch Auction

A method of auction in which the price of the item is reduced until it meets a bid.

Shares

Portions of ownership in a corporation or financial asset.

Dutch Auction

An auction model where the price of the item is lowered until it finds a buyer, commonly used for selling financial securities.