Question: Small business owner Jay Goltz described several decisions he made to reduce the fixed costs of his businesses, including replacing halogen lamps with LED lamps.

Small business owner Jay Goltz described several decisions he made to reduce the fixed costs of his businesses, including replacing halogen lamps with LED lamps. Goltz noted, "I'm guessing that many business owners could save a lot more than pennies on their fixed costs, and those savings ... fall right to the bottom line."
a. Why are the costs of electricity used to power the lights used in Mr. Goltz's businesses fixed costs?
b. Explain why Goltz wrote that reducing fixed costs results in savings that "fall right to the bottom line."

Step by Step Solution

★★★★★

3.54 Rating (164 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a Fixed costs are costs that remain constant as ou... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

1347-B-A-A-M-E(479).docx

120 KBs Word File

Students Have Also Explored These Related Micro Economics Questions!

Harbor Dunes Golf Course was recently honored as one of the top public golf courses in South Carolina. The course, situated on land that was once a rice plantation, offers some of the best views of...

The fixed costs of running a fund- raising dinner for Meals for the Homeless are $ 10,000 and the variable costs are $ 75 per attendee. The facility where the event is being held can accommodate 500...

The following are the Class Companys unit costs of manufacturing and marketing a high-style pen at an output level of 20,000 units per month: Manufacturing cost Direct materials ......$1.00 Direct...

The Liquid Chemical Company manufactures and sells a range of high-grade products. Many of these products require careful packaging. The company has a special patented lining made that it uses in...

Small business owner Jay Goltz described several decisions he made to reduce the fixed costs of his businesses, including replacing halogen lamps with LED lamps. Goltz noted, " . . . I ' m guessing...

Summarize the following chapter: (Basic Elements of Planning and Decision Making) Obviously, insurance companies incur immense risks because of the number of policies they issue, but you may not know...

Make the summary of the following chapter "Basic Elements of Planning and Decision Making" . Obviously, insurance companies incur immense risks because of the number of policies they issue, but you...

Summarize the following chapter in your words: (Basic elements of Planning and Decision making) Decision Making and the Planning Process:> Decision making is the cornerstone of planning. Several...

Summarize the following chapter: (Basic Elements of Planning and Decision Making) Decision Making and the Planning Process Decision making is the cornerstone of planning. Several years ago, Procter &...

Summarize the given chapter: (Basic Elements of Planning and Decision Making) what are Decision Making and the Planning Process? Decision making is the cornerstone of planning. Several years ago,...

Golden travel voyages Inc., is a company operating as a summer tourist attraction on the great lakes. It operates a sailing schooner offering day cruises for individuals and groups. Over the last few...

The length of a bridge, measured in meters, is an example of Multiple Choice measurement data. either categorical or quantitative data. categorical data. quantitative data.

Problem 1 Find x 1 0 ( x 2 ) d x .

Use the following data and a stepwise regression analysis to predict y. In addition to the two independent variables given here, include three other predictors in your analysis: the square of each x...

The Hospital database associated with this text and found in Wiley PLUS contains a dichotomous variable, Service, that represents two types of hospitals, general medical and psychiatric. In the...

Study the output given here from a stepwise multiple regression analysis to predict y from four variables. Comment on the output at eachstep. STEPWISE REGRESSION OF Y ON 4 PREDICTORS, WITH N = 63...

The U.S. Energy Information Administration releases figures in their publication, Monthly Energy Review, about the cost of various fuels and electricity. Shown here are the figures for four different...

Many economists are worried that a high level of budget deficits may lead to inflationary monetary policies in the future. Could these budget deficits have an effect on the current rate of inflation?

What is Okuns law, and how can it be used to derive an output gap Phillips curve?

John Maynard Keynes developed a model, later elaborated by John Hicks, in which total output is determined solely by total spending with little consideration of the supply (production) side of the...

Would you expect the bank lending channel (as it operates through commercial banks) to have a larger or a smaller effect in emerging economies, such as Brazil or India, than in the United States?...

You've invested $2,800 in Stock Arbuckle and $3,800 invested in Stock Roscoe. The expected returns on these stocks are 8 percent and 11 percent, respectively. Calculate the expected return on the...

The balance sheet and income statement shown below are for Sneaker Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next...

Present value ( in $ ) of an annity due \ table [ [ \ table [ [ Annuity ] , [ Payment ] ] , \ table [ [ Payment ] , [ Frequency ] ] , \ table [ [ Time ] , [ Period ( years ) ] ] , \ table [ [ Nominal...