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The fixed cost is known to be £5,000, so the variable cost during the busy week is £5,600, and during the quiet week is £3,500. The factory was running for 70 hours during the busy week ( X 1 {\displaystyle X_{1}} ) and 40 hours during the quiet week ( X 2 {\displaystyle X_{2}} ).
Cost–volume–profit (CVP), in managerial economics, is a form of cost accounting. It is a simplified model, useful for elementary instruction and for short-run ...
More specifically, a mixed economy may be variously defined as an economic system blending elements of a market economy with elements of a planned economy, [1] markets with state interventionism, [2] or private enterprise with public enterprise. [3] [4] Common to all mixed economies is a combination of free-market principles and principles of ...
Along with variable costs, fixed costs make up one of the two components of total cost: total cost is equal to fixed costs plus variable costs. In accounting and economics, fixed costs, also known as indirect costs or overhead costs, are business expenses that are not dependent on the level of goods or services produced by the business. They ...
For example, you may be paying $2,000 every month in rent, mortgage or total cost of living. Some fixed expenses are also paid annually, bi-annually or quarterly.
Single-stream (also known as “fully commingled” or "single-sort") recycling refers to a system in which all paper fibers, plastics, metals, and other containers are mixed in a collection truck, instead of being sorted by the depositor into separate commodities (newspaper, paperboard, corrugated fiberboard, plastic, glass, etc.) and handled separately throughout the collection process.
Contribution margin (CM), or dollar contribution per unit, is the selling price per unit minus the variable cost per unit. "Contribution" represents the portion of sales revenue that is not consumed by variable costs and so contributes to the coverage of fixed costs. This concept is one of the key building blocks of break-even analysis. [1]
Variable costs are sometimes called unit-level costs as they vary with the number of units produced. Direct labor and overhead are often called conversion cost, [3] while direct material and direct labor are often referred to as prime cost. [3] In marketing, it is necessary to know how costs divide between variable and fixed. This distinction ...