ECONOMICS

Detailed explanation-1: -If a hospital’s sales are $500, 000, variable costs are $200, 000 and fixed costs are $240, 000, what is the contribution margin ratio? Answer: D-If a hospital’s sales are $500, 000, variable costs are $200, 000 and fixed costs are $240, 000, the contribution ratio is 60%.

Detailed explanation-2: -First, add up all of your production costs. Make sure to be clear about which costs are fixed and which ones are variable. Take your total cost of production and subtract your variable costs multiplied by the number of units you produced. This will give you your total fixed cost.

Detailed explanation-3: -Variable Cost Formula. To calculate variable costs, multiply what it costs to make one unit of your product by the total number of products you’ve created. This formula looks like this: Total Variable Costs = Cost Per Unit x Total Number of Units.

Detailed explanation-4: -If a firm has $9, 000 of fixed costs and $21, 500 of variable costs, then the time period referred to is: the short run. The production function provides information about: the transformation of inputs into outputs.