A few days ago
HELP! Which of these are fixed costs and which are variable costs?
Revenues
Cost of goods sold
Gross Margin
Selling expenses
Gen & Admin
R&D
Debt
Pretax Profit
I need to figure out the break even point, but I’m not sure which is fixed, variable, or not. Help please!!
Top 2 Answers
A few days ago
Favorite Answer
Fixed costs are the ones locked into a given amount – administration, for example, is usually a fixed cost because you don’t fire all your office staff if you go through a bad slump. Paying the electricity is the prototypical fixed cost. Variable costs are the ones that can change completely – selling expenses can be very small (if you don’t advertise) or huge (if you run a superbowl ad and package every widget in a hand-made wooden box). Some of those on your list are neither fixed or variable.
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A few days ago
Your fixed costs won’t change in the future and are expenses. Here are the terms, meanings, and a break even calculator….
http://connection.cwru.edu/mbac424/breakeven/BreakEven.html
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