Zipco is in serious negotiations to purchase a chunking machine that will enable them to perform their own chunking at $1 per unit. They currently have their chunking outsourced at a cost of $1.50 per unit and a fixed cost of $45,000. Their marketing team feels that they can sustain an annual volume of 10,000 units. What is the maximum fixed cost that Zipco should be willing to bear in order to perform their own chunking
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Ответ:
Profits are the net amount on a profit and loss statement. They are the result of sales minus expenses. That's not the same thing as cash. Think of it this way: Profits are an accounting and tax concept, that comes into play at the end of an accounting period and at tax time.
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