Many financial experts advise that you set up a contingency fund equal to about of your earnings and keep these funds in highly liquid accounts.

1 month of earnings

Explanation:

Financial experts gives advice on coming up with a contingency plan in finances. These contingency plans involve setting aside an amount of morning in liquid accounts equivalent to one month of the earner’s salary.

By considering that you might be having some unforeseen circumstances in the nearest future, it is advised by many financial analyst to manage your risk potential by being cash ready in an account with an amount of money that is equal to one month pay of the monthly wages.

urban company reports the following information regarding its production cost: units produced 37,000 units direct labor $ 30 per unit direct materials $ 35 per unit variable overhead $ 237,000 in total fixed overhead $ 127,000 in total