You Are Currently Trying To Decide Between Two Cost Structures For Your Business One 2903898

You are currently trying to decide between two cost structures for your business, one that has a greater proportion of short-term fixed costs, the other that is more heavily weighted to variable costs. Estimated revenue and cost data for each alternative is as follows: Data Alternative 1 Alternative 2 Selling Price per Unit $100.00 $100.00 Variable Costs per Unit $85.00 $80.00 Total Fixed Costs (per Year) $40,000 $45,000

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