Teamwork in Action

TEAMWORK IN ACTION Retail fund that sells music CDs 1. In sell interpose that sell music CDs, the single round best reflects the overall level of activity is Number of CDs interchange. In respect to changes in the measure of CDs sold, a variable appeal is a cost that varies, in total, in come in proportion while a fixed cost trunk unchanged, in total, regardless of any change. -Examples of fixed and variable costs in respect to small changes in the measure of selling CDs terms embody behavior Variable Fixed The cost of advertising new store XNumber of CDs supplied X The cost of renting space for store X The electrical cost in store X The direct labor cost X The cost of delivering CDs X Variable Cost Number of CDs supplied Cost of CD come variable Cost CDs 1 35. 000 35. 000 50 35. 000 1. 750. 000 100 35. 000 3. 500. 000 Fixed Cost Monthly Labor cost Number of CDs sold Average cost per CD 5. 000. 000 20 250. 000 5. 000. 000 70 71. 428,6 5. 000. 000 150 33. 333,3 2 . Relationship between the human activity of CDs sold and others Cost look of the cost In Total Per Unit Fixed cost Total fixed cost is not affected by changed in the number of CDs sold. Fixed cost per unit decreases as the number of CDs sold rises and increases as this number falls. Variable cost Total variable cost increases and decreases in proportion to changes in the number of CDs sold. Variable cost per unit ashes constant. Total cost Increases and decreases in proportion to changes in the number of CDs sold Average total cost per unit Increases and decreases in proportion to changes in the number of CDs sold