Examlex

Solved

Brandon's Computer Shop Is Considering Two Different Configuration Options

question 4

Essay

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?


Definitions:

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.

Related Questions