Abraham Baldwin Agricultural College Types of Fixed and Variable Costs Discussion

answer this Question. Discuss Pick out two different businesses/industries with different types of fixed and variable costs ( hint: retail and manufacturing) .

List the fixed and variable costs  for each. Try to guestimate the length of the short run for each.

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Hello friend this is my classmate respondIf we are talking about retail environments ill use my job as an example Best Buy:Fixed costs:Lease on the building spaceEmployee Salaries ( Assuming we dont hire more often)UtilitiesInsurance policiesThe taxes on the property itselfTraining CostsEquipment depreciation since you need machines it is technically losing something the more you own themVariable costsShipping and import costs Fees on credit cards ( Reason why Best Buy pushes the best buy card)Hourly wages ( Since people can work more or less)The short run for a store like best buy is probably between a month to a year since they company would be new and gain traction. its only a matter of time before competition takes a shot at the company and provides alternatives for the goods and services providedA manufacturing company we can look into maybe a steel plantFixed costsLease of building Insurance Equipment depreciationProperty taxesUtilitiesTraining CostsTransport costsTariffs on materialsSalariesVariable costs Hourly WagesProduction suppliesFor a manufacturing company the short run in my mind would be very short as usually there are a lot of different companies supplying the same goods its harder to step into for example the steel industry or even a car industry if you think about it that way as well my guess the longest it would be is between 1 to three months