# variable expenses

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## Variable Cost

A cost to a person or business that varies over time according to a number of factors. For example, a dental office must buy dental supplies, which usually cost about the same. This is a fixed cost. On the other hand, the dental office must also pay the electric and gas and water bills, which may fluctuate considerably. This is a variable cost.

## variable expenses

Property operating expenses that increase and decrease in relatively direct proportion to changes in occupancy. It is important to differentiate between fixed expenses and variable expenses because the fixed expenses must be met every month,no matter what the occupancies.In preparing a pro forma analysis for a new project,one will usually calculate fixed expenses starting with month 1 and continuing unchanged until perhaps another employee must be added to the payroll.Variable expenses, however, are always calculated as dependent on lease-up and tied to each month's occupancy figures if the pro forma is a spreadsheet.

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(1) Financial result = C.A - Variable expenses - Fixed expenses C.A - Variable expenses = Gross contribution /Preliminary financial result,
variable expenses. One bucket could be set aside for basic living expenses, another for a child's or grandchild's college fund, and another for travel or whatever other goal or variable expense a retiree has.
1 Property Purchase price \$62,500,000 Net rentable area (SF) 250,000 300,000 Land area (acres) 1.75 2.00 Land-to-building ratio 0.30 0.29 Floor area ratio 3.28 3.44 Occupancy rate 70% 80% Weighted average remaining 2.25 2.20 lease term (yrs.) Contract rent (per SF) \$32.00 \$35.00 Remaining term on above-/ 18 12 below-market rent (mos.) Remaining free rent (mos.) -- -- Fixed expenses (per SF) \$10.00 \$10.00 Variable expenses at \$2.25 \$2.25 stabilized occupancy (per SF)(excluding mgt.
Clarifying the difference between fixed and variable expenses, the experts strongly recommended that customers prioritise paying off loans and other debts.
Many other types of variable expenses can abate, depending on the severity of the loss and may include utilities, business personal property and real property taxes, advertising, shipping costs, depreciation on destroyed business property, payroll and more.
Work on budgeting the balance for your expenses, and make up for the chunk you took out by minimizing variable expenses, rather than letting your expenses pile up and cutting back your savings.
In general, all business expenses fall into one of the two categories: fixed and variable expenses. As the names imply, fixed expenses are expenditures that remain unchanged, regardless of sales volume, whereas variable expenses will fluctuate in response to changes in business operations and revenue.
Can you clearly identify the main revenue streams plus fixed and variable expenses? Generating \$10 million in revenue doesn't mean you're profitable if you have \$10 million or more in costs.
Once variable expenses are determined, you can plug that number into the following formula to determine if you should fly fast:

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