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1. A construction’s variable costs are fuel which affects a lot of companies, and when fuel prices increase, the price to transport increase. Labor costs vary greatly depending on a number of factors, and materials. The costs of direct materials vary depending on the amount of product manufactured.
1)Variable costs change in relation to a company’s activities, such as if I were to hold for a manufacturer or a restaurant. Typical variable costs include direct labor, direct materials, supplies and certain utilities. Most of the variable expenses that this restaurant incurs would be the same as any retailer would incur; therefore, if the volume of the sales are higher, the more of the variable cost will get at, or be.
2) Well, to be honest a basic restaurant would consist of items such as rent, insurance, and lease payments. Fixed costs are costs that will not change much even if sales go up or down. Overhead also may include rent for the space the restaurant occupies or our weekly payroll.
3)3. Is gross profit or net profit more important to consider when you're deciding how successful and profitable a company is? Why? Explain. (1-3 sentences. 2.0 points) ~I honestly think that Net Profit is more important to consider when you are deciding how successful and profitable a company is because it is what we all are ahead and after the taxes have been taken out or paid. I mean, for example, a business can have a revenue of a million dollars, but if there costs are two million, they then have a negative net profit.
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1. Choose a real or made up example of a company, and describe at least three variable costs the company has. (1-3 sentences. 1.5 points)
2. Choose a real or made up example of a company, and describe at least three fixed costs the company has. (1-3 sentences. 1.5 points)
3. Is gross profit or net profit more important to consider when you're deciding how successful and profitable a company is? Why? Explain. (1-3 sentences. 2.0 points)
4. If you were running a company, describe at least two things you would do to improve its productivity. (1-4 sentences. 2.0 points)
5. Describe at least two advantages a large company has over a smaller company. (1-4 sentences. 2.0 points)
6. Choose a good you are familiar with, and analyze its economic utility, using the questions below. NOTE: Choose a good for this exercise, not a service.
a. What type of good did you choose? (1 sentence. 1.0 points)
b. Describe the form utility of the product you chose. What makes its form useful? Can you think of any improvements that could be made to its form utility? (1-3 sentences. 2.0 points)
c. Describe the place utility of the product. Can you think of any improvements that could be made to its place utility? (1-3 sentences. 2.0 points)
d. Describe the time utility of the product. Can it be improved at all? (1-3 sentences. 2.0 points)
e. Describe the possession utility of the product. Can it be improved at all? (1-3 sentences. 2.0 points)
f. Describe the information utility of the product. Can it be improved at all? (1-3 sentences. 2.0 points)
