BUSINESS MATH Q2

Salary Commission

Graduated Commission

Straight Commission

Installment Commission

Salary Commission

Graduated Commission

Straight Commission

Installment Commission

Salary Commission

Graduated Commission

Straight Commission

Installment Commission

P4,000

P800

P2,000

P400

A cost that varies with the level of output.

A cost that remains constant regardless of the level of output.

A cost that changes with the level of sales.

A cost that is partially fixed and partially variable.

Rent for the factory.

Salaries of permanent staff.

Raw materials used in production.

Insurance premiums.

$$\frac{\text{Fixed Costs}}{\text{Selling Price per Unit} - \text{Variable Cost per Unit}}$$

$$\frac{\text{Total Revenue}}{\text{Total Costs}}$$

$$\frac{\text{Total Sales}}{\text{Total Revenue}}$$

$$\frac{\text{Variable Costs}}{\text{Fixed Costs}}$$

By determining the maximum production capacity.

By identifying the most profitable product line.

By setting sales targets to ensure profitability.

By calculating the total fixed costs.

It assumes that all costs are variable.

It assumes that sales prices remain constant.

It does not consider fixed costs.

It is only applicable to large businesses.

To show the relationship between costs, revenue, and profit at various levels of output.

To calculate the total fixed costs of a business.

To determine the maximum production capacity.

To identify the most profitable product line.