fixed or variable costs
A pair of shoes that wholesales for $28.79 has the following costs:
Manufacturing Labor 2.25
Materials 4.95
Factory overhead, operating expense 8.5
Sales costs 4.5
Advertising 2.93
Research & Development 2
Interest 0.33
Net Income 3.33
Which are variable, and which are fixed?
If output were to rise, what would happen to average total costs, and why?
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Hi there,
<br>
<br>Variable costs are costs that can be varied flexibly as conditions change. They are unit costs which depends on total volume.
<br>Fixed costs are the costs that do not vary with the number of goods produced. ...
Solution Summary
The expert examines the fixed or variable costs.
$2.19