4 Your rich relative died and left you 100000 which you deci

4. Your rich relative died and left you $100,000, which you decided to use for your own Internet business. What will be your fixed and variable costs? Briefly discuss.

Solution

Variable costs are costs that vary depending on a company\'s production volume; they rise as production increases and fall as production decreases.

Cost like Internet, telephone and electricity charges

Fixed costs such as rent, advertising, and office supplies, which tend to remain the same regardless of production output.