A pair of shoes that wholesales for $28.79 has the following costs:
Manufacturing Labor 2.25
Factory overhead, operating expense 8.5
Sales costs 4.5
Research & Development 2
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?© BrainMass Inc. brainmass.com March 4, 2021, 5:58 pm ad1c9bdddf
<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. ...
The expert examines the fixed or variable costs.