This is one fixed cost
that declines every month, so the "cost" is not technically fixed, but close to it.
Following those classifications, ME is a fixed cost
, NME is a variable cost.
GMNA's annual fixed costs
from 2002 through 2008 ranged from $29 billion to $40 billion.
If we assume a long-run fixed cost
of 10, say legal fees that do not vary by output but are avoidable each period of production, the LRTC and SRTCs will change.
A rate design with a low customer charge and with a significant portion of fixed cost
and margins recovered through the energy charge would result in revenue that was insufficient to support the investment necessary to serve loads such as vacation homes, barns, stock tanks, electric fences, and hunting cabins.
Because variable costs are so sensitive to changes in performance, they typically receive more attention than fixed costs
and are monitored more closely.
In the figure we use the notation "AV" to refer to average choice, while "FC1" through "FC4" correspond to the fixed cost
levels in Table I.
As previously noted, 60 percent ($6,000) represents fixed costs
and 40 percent ($4,000) represents variable costs.
Total Fixed Costs
I-[Average Variable Cost Per Unit Sold] Average Revenue Per Unit Sold
When the fixed costs
and the variable costs per unit are known, an analysis can be made of total cost based on the number of units produced.
Finnish metals and technology company Outokumpu Group said on Wednesday (4 January) that it had completed personnel negotiations that were part of the company's fixed cost
So, while gas is not a fixed cost
, it should be treated as such for this analysis because it's more fixed than variable in nature.