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Question - Break-even Analysis sub-objective
Katie and Holly founded Hokies Plumbing Company afer graduating from college. They wanted to be competitive, so they set their rate for house calls at a modest $100. After paying the company's gas and other variable costs of $60, the women thought there would be enough profit. Because they were ready to live life a bit, they set their salaries at $100,000 each. There were no other fixed cost at all.
Required: Calculate the number of house calls that Hokies Plumbing must make to break even.
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
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