The opportunity cost formula is a simple solution to answer the age old question of whether a particular course of action is worth starting. Opportunity cost is the total sum of what a person or organization has after they compare that sum to what they sacrifice. Opportunity cost is all about the profit a person or organization associates with missed or lost opportunities.Know More
Another way to think about opportunity cost is to see it as a part of a lost contribution margin. A lost contribution margin is revenue, another word for money, minus variable cost. Variable costs come into play as a person or organization has to choose one course of action over another when providing a service or product. People and organizations use the opportunity cost formula to figure out if they have an absolute or comparative advantage over their competition.
The opportunity cost formula is a tool for staying competitive in a market that is not mutually exclusive. It is a useful formula for managing profit loss and figuring out if a course of action sustainable or not. The opportunity cost formula is an important tool for a crucial understanding of benefits and gains from alternative use of resources.Learn more about Economics
The consumption function formula is C = A + MD. Where: C is the consumer spending, A is the autonomous spending, M is the marginal propensity to consume and D is the disposable income.Full Answer >
Labor productivity is determined by dividing the output, or total amount of goods or services produced, by the number of workers. Labor productivity is used to measure worker efficiency.Full Answer >
A clogged dishwasher drain may be unclogged using a simple solution made of vinegar and baking soda, along with the assistance of a straightened wire coat hanger. It is important to first make sure what is preventingÂ the dishwasher from draining as a full garbage disposal or a clogged air gap can also keepÂ the dishwasher from draining properly.Full Answer >
There are two formulas for calculating variable cost ratio. The first formula is: TVC ÷ TS = VCR. TVC is total variable costs, TS is total sales and VCR is variable cost ratio. Here's an example with numbers: $2000 ÷ $10000 = 0.2. The variable cost ratio is 20 percent.Full Answer >