Question

Choose a real or made up company abd desvribe at least 3 variable costs the company has.

Answer 1

Dominos is a company that has many variable costs. Some examples include flour, cheese, and tomatoes.

Explanation:

Answer 2

The three main variable costs of any company are:

Raw materials or components that are proportional to the number of units produced. For example, if you need 2 pounds of materials to produce 1 unit of good X and you produce 100 units, your total materials will be 200 pounds.

Direct labor which is proportional to the number of hours worked. For example, if you need 0.5 hours of labor to produce 1 unit of good X and you produce 100 units, your total direct labor will be 50 hours.

Sales commissions which are paid as a percentage of total sales closed by your salesforce. For example, each salesperson earns $10 per unit of good X sold, and 100 units are sold, the salesperson will earn $1,000.