Sales are Rs. 8000; variable Cost Rs.5000 and fixed cost Rs.4000. Hence there will be
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hence you go to home the rate is to much
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Answer:
Sales, variable and fixed cost
Explanation:
- Sales can be defined as the operating revenues that which a company will earn from the business activities such that the products, services and its selling price gains”.
- Sales are also called as operating Revenues.
- Example of sales:
When the company sells the assets that is non-current, it will not be further considered in sales account.
- A variable cost is a process when the expense of a corporate changes into a proportion of how the particular company will sells or produce the requirements.
- The variable cost will increase and decrease due to production or sales of an company, when there will be rise in production falls with increasing the production will decrease.
- Example of variable cost:
When the costs of raw materials and packaging of production.
- A fixed cost is defined as when the cost which will not change when an increase or decrease that takes place when the number of services or goods will be produced or sold. In terms, we can understand that the expense will be paid by a company so that the business activities take place in specific.
Given that:
Sales = Rs. 8000;
Variable Cost = Rs.5000
Fixed cost = Rs.4000
To find:
The outcome=?
Solution:
1) sales + variable cost
8000+ 5000 = 13000
2) 13000 + fixed cost
13000+ 4000 = 17000
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