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Related to Variable costs: direct costs, Semi Variable Costs
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Net revenue is railroad revenue minus variable costs measured in dollars per 1000 bushels.
Changes in variable costs resulting from the reform are less dramatic, mainly because of the dominance of wages within total variable costs.
check] $962,000 in variable costs per year from decreased hospital utilization.
What we needed was a system that provided for the variable costs in our foundry.
The relevant range is the volume zone within which the behavior of variable costs, fixed costs, and prices can be predicted with reasonable accuracy.
Variable costs (Table 3) were markedly different, $62 933 for the field preservation and $11 077 for the in vitro part.
It may seem as if some variable costs ought to be considered fixed costs; however, they usually appear to be fixed in the short run, but prove to be variable over the long haul.
The contribution margin (CM) is the excess of revenue(R) over the variable costs (VC) of the service.
1 GINGER LAKE CAMP 2 BUDGET ANALYSIS PRIOR BUDGETED 3 YEAR AMOUNT 4 NUMBER OF CAMPERS 100 100 5 6 TUITION REVENUE $350,000 $370,000 7 8 FIXED COSTS 9 Rent or depreciation & property tax 75,000 80,000 10 Staff salaries 65,000 70,000 11 Office expense & promotion 20,000 25,000 12 Fixed program costs 12,000 15,000 13 Other fixed costs 25,000 25,000 14 TOTAL FIXED COSTS 197,000 215,000 15 16 VARIABLE COSTS 17 Food 36,000 37,000 18 Counselors' salaries 45,000 50,000 19 Insurance premiums - variable 16,000 17,000 20 Supplies 15,000 16,000 21 Other variable costs 8,000 10,000 22 TOTAL VARIABLE COSTS 120,000 130,000 23 PRETAX OPERATING INCOME $ 33,000 $ 25,000 24 CAMPER CONTRIBUTION $ 2,300 $ 2,400 25 CAMPERS TO BREAK EVEN 86 90
Variable costs are those which fluctuate based on sales volume (or units sold/manufactured).
To use Hutt's analysis, the break-even point can be determined by calculating your fixed costs (unvarying expenses), variable costs (fluctuating expenses) and your contribution margin (selling price per unit minus variable expenses per unit).
When the fixed costs and the variable costs per unit are known, an analysis can be made of total cost based on the number of units produced.