Question

Juniper had revenues of $456,000 in March. Fixed costs in March were $294,000 and profit was $25,200.

Answer 1

To calculate Juniper's variable costs for March, the fixed costs and profit are subtracted from total revenues. This approach follows basic principles of business accounting and profit calculation.

Step-by-step explanation:

Understanding Profit Calculation

Juniper's financial question involves calculating profit, which is a concept in business and economics. To find Juniper's variable costs, we must deduct fixed costs and profit from the revenues. Here's the step-by-step calculation:

1. Determine total revenues for March, which were $456,000.
2. Subtract fixed costs of $294,000 from the total revenues.
3. Subtract the profit of $25,200 from the remainder to find variable costs.

Following these steps, you will arrive at the variable costs for Juniper in March. Understanding this calculation is crucial to assess the viability of a business, similar to the reference examples provided.