Most businesses have fixed costs and variable costs

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Most businesses have fixed costs and variable costs. Fixed costs are those cost that business has to incur even if no revenue is generated or its sale is just zero. A variable cost includes the material and labor cost per unit of the product an organization is manufacturing or selling. Suppose you have a business of selling ladies suits. The variable cost includes cost of buying, transporting to your site, and any labor cost involved in loading/unloading, storing, etc. and it is computed as a cost per unit. Fixed cost includes rent, utilities, taxes, etc. All those costs that are incurred if you do not sell even a single suit. Describe the fixed and variable costs and revenue for the following businesses: a. You own a trucking company b. You own hotel of 50 rooms c. You own a beautician store.

Reference no: EM132208738

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