KNR 271 Lecture Notes - Lecture 12: Fixed Cost
KNR 271
Recreation Programming
TTH 9:35am-10:50am
Upcoming Dates:
Blueprint HW #3: 4/5
Chapter 19: Pricing Program Costs
Pricing Program Costs
Variable Costs:
oChange directly and proportionally with changes in volume (number of
participants)
EX:
15 more people added to program means you need 15 more shirts
Fixed Costs:
oDo NOT change with changes in volume (number of participants)
EX:
Venue price won’t change if there are 10 or 15 participants
Changing Fixed Costs:
oChange in the same direction, but not proportionally.
They do not change with each participant added
EX:
oAdd another lifeguard when number of participants reach
26.
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