Explain scaleable vs nonscaleable-implication for management

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Reference no: EM131213024

Total Fixed Costs are scaleable

Variable Costs per unit are scaleable

Revenue per unit is scaleable

This is why the break-even formula is SPx-VCx-TFC = 0.

nonscaleable would cover FC per unit and TVC which are dependent on actual volume to be the correct measure.

The variable cost per unit and the total fixed costs are used in the breakeven fomula because they are scaleable. In about 4-8 sentences, please explain scaleable vs. nonscaleable and the implications for management.

Reference no: EM131213024

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