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Brandon's computer shop is considering two different configuration options.The first one is to have each computer built by the sales associates when they have free time.The second option is to hire a dedicated assembly technician.Option A has variable costs of $50 per computer and no fixed costs.Option B has a fixed cost of $1,000 but variable costs of only $5 per computer.What is the cross-over point?
Authorized Stock
The maximum number of shares a corporation is legally permitted to issue, as stated in its articles of incorporation.
Corporate Charter
A legal document issued by a government that establishes a corporation as a legal entity and outlines its rights and obligations.
Formal Accounting
A systematic process for recording, summarizing, and reporting the financial transactions of an organization, adhering to standardized guidelines and principles.
Initial Capital
The amount of money that is invested in a business at the start, used to cover startup costs and initial operating expenses.
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