Assignment 2: Costs and Profit

Satisfactory Essays
Assignment 2: Costs and Profit
(20 points) In Section 2, you learned about costs and profit. Now, you'll apply what you learned. 1. Choose a real or made up example of a company, and describe at least three variable costs the company has. (1-3 sentences. 1.5 points) soaring angels attire company’s first variable cost is shirts they customize shirts to whatever you want them to be but how many shirts you want tells them how much material they need. Same thing with the shoes they also customize them and so how many pairs of shoes you want lets them know the amount of material they need. And lastly the same with the hoodies depending on how many hoodies you want tells them they amount of material they need to make them all. 2. Choose a real or made up example of a company, and describe at least three fixed costs the company has. (1-3 sentences. 1.5 points) The first fixed cost is the location no matter how much soaring angels make the pay the same cost for rent each month. The next fixed cost is equipment because we have to pay for the shoes, hoodies, shirts, and the thread to make the designs. The last but not least fixed cost is the insurance that we have on the building. 3. Is gross profit or net profit more important to consider when you're deciding how successful and profitable a company is? Why? Explain. (1-3 sentences. 2.0 points) In deciding how successful and profitable my company is net profit is more important. It is more important because it tells how profitable the company is after all cost has been paid. Also because it is known in business as the bottom line, which is the amount of money left over after paying all expenses. 4. If you were running a company, describe at least two things you would do to improve its productivity. (1-4 sentences. 2.0 points)There are many ways that I can improve my productivity, but one way is by technology. I would use an electronic sewer rather than my hands to help speed up the process and get people

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