A company has fixed operating costs of $1739.00 per month with a production cost of $15.32 per unit. If each unit brings $30.94 in revenue, which of the following equations represents the profit for the month? (Let x represent the number of units made per month and y represent the total profit for the month.
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Answer:
Operation cost, often referred to as operating cost, is the money that it takes to run your business. These are the day-to-day business expenses required to keep the lights on and to have the staff necessary to sell and fulfill customer needs. Operating costs are often reflected on the income statement, which is recorded for a company each year; the income statement reviews broad financial indicators such as overall revenues, the costs of goods sold, the operating costs and net profits. When establishing the financial books for your company, understanding what's considered an operating cost versus other costs helps properly account for costs. This makes it easier to create annual statements and accounting records, when determining the financial health of the business.