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What is the the variable costs plus the fixed costs?
Type your answer here... fixed cost + variable cost = total cost
Why are variable costs more relevant than fixed costs in short-term decision making?
Fixed costs are costs that cannot be changed in the short-term without causing significant harm to the organization. Because you cannot change them, you should not consider them in comparative analysis of alternatives.
Ensco Lighting Company has fixed costs of 100000 sells its units for 28 and has variable costs of 15.50 per unit?
Break-even is 8,000 units. 100,000/(28-15.50)=8,000
How linear equations came in to use?
There are many real life situations in which two variables are related through a linear equation. Some examples from those used in schools: Temperature in Celsius and Fahrenheit scales Manufactrunig costs as fixed costs plus unit costs Cab fares as fixed amount plus distance-related amount Workmen charges as call out plus hourly rate
When other factors are constant what is the effect on profits of an increase in fixed costs Of a decrease in variable costs?
From the perspective of the income statement and profits, there is no difference between bucketing costs in variable or bucketing them in fixed. The operating profit line of the income statement takes both costs into account so that an increase in one with an offsetting decrease in another will have zero impact to profits. Issue related to bucketing of certain items are normally internal discussions for a business and relate to various scorecards or metrics of interdepartmental performance. In most businesses there are separate mgrs and depts responsible for variable cost and fixed costs so the debate over where to bucket certain items is driven by whose scorecard they fall onto and ideally costs should be bucketed internally onto the scorecard of the mgr/dept with the greatest ability to influence those costs.
