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    Fixed cost and variable cost for companies

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    The websites of selected companies appear below. Review the information about the operations of each of the companies that is provided on these websites.

    Biolea (http://www.biolea.gr).

    Evian at http://www.evian.com).

    Ircon International Limited (http://www.irconinternational.com).

    Gulf Craft Inc. (http://www.gulfcraftinc.com).

    A brief description of the operations of the company,

    Two specific examples of possible fixed costs, two specific examples of possible variable costs, and two specific examples of possible mixed costs.

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    Solution Preview

    Behavior of Costs

    Biolea was founded in 1997 by George Dimitriadis and Christine Lacroix and produces and markets organic olive oil and promotes the use of authentic traditional stone ground and cold pressed method of extraction in olive oil production. The company is located in the Astrikas estate in the island of Crete. The estate is now being managed by the 5th generation Dimitriadis family who purchased the estate in the mid-18th century.
    Based on the study of Biolea's operations an example of its fixed costs is the property tax levied on the estate. Another fixed cost is the salaries and wages of its management team - whatever the season is the number of members of the management team of Biolea remains relatively constant. On the other hand, the labor cost of the farm workers is a variable cost. As the olive oil production volume increases, the total production labor cost increases. Another variable cost is the cost of packaging which ...

    Solution Summary

    Fixed and variable costs for companies operations are examined. Multiple companies are examined.