Identify the Differences Between a For-Profit Business Providing a Good

question 25

Essay

Identify the differences between a for-profit business providing a good or service to its customers and a nonprofit providing a good or service to its customers. What does the act of satisfying customers in each instance do to its resources?

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales activities within a certain range.

Contribution Margin

The remaining income after removing variable expenses, allocated to settle fixed expenses and create profit.

Sales Mix

The combination of products or services that a company sells, represented in proportions or percentages.

Markup On Total Cost

A pricing strategy where a fixed percentage is added to the total cost of a product to determine its selling price.