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In order to extrapolate these cost figures to other geographical areas, the distinction between the variable costs and the fixed costs plays an important role.
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The difference between these three scenarios consists of a pro-rating of all of the variable costs while holding the training costs fixed.
Only the variable costs are considered.
Subtract the variable costs from the price.
This is calculated as the difference between the sales price per unit and the variable cost per unit.
We call this term the "variable cost".
The variable cost is $3/unit and the variable cost of selling is $1/unit.
Divide the difference between revenues and fixed costs and operating expenses by the number of units made to determine the variable cost per unit made.
The unit variable cost is simply the variable cost per unit produced.
The assumption is that there's a considerable population of people who are caught between the high-cost, low-commitment world of car and ride sharing and the variable-cost, high-commitment world of ownership.
Even the distinction between overhead and variable costs is subject to debate.
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CEO of Professional Science Editing for Scientists @ prosciediting.com