Class Notes (1,019,027)
AUS (34,924)
ANU (973)
Sorin (12)
Lecture 11

BUSN1001 Lecture Notes - Lecture 11: Variable CostPremium

2 pages68 viewsSpring 2018

Department
Business
Course Code
BUSN1001
Professor
Sorin
Lecture
11

This preview shows half of the first page. to view the full 2 pages of the document.
Lecture 11
CVP (cost-profit analysis)
Fixed costs e.g. rent
Variable costs e.g. COGS
o Variable cost per unit may decrease with activity
Mixed costs
o Stepped costs (same until a level is reached) e.g. rent
o Semi fixed costs e.g. advertising costs designing a video is fixed,
amount of times shown in variable (aspects of both)
Break even point
BEP = Fixed costs / (Revenue per unit Variable costs per unit(marginal
costs))
Revenues variable costs = contribution margin
If contribution margin > fixed costs profit
You're Reading a Preview

Unlock to view full version

Subscribers Only

Loved by over 2.2 million students

Over 90% improved by at least one letter grade.