Variable, Not Fixed Costs
In this article, you’ll learn: How to calculate a break-even demand per catalog using variable costs.
* Fixed costs. Once you’ve decided to create and mail a catalog, some costs are fixed and therefore won’t change. Any cost that’s not dependent on the number of catalogs printed is considered a fixed cost (e.g., photography, creative).
Costs associated with these also are called “one-time costs” since they’re incurred once and won’t change, regardless of whether you print 1,000 books or 1 million. These items, and any others incurred just once, should be excluded from your break-even demand per catalog calculation.
- Companies:
- Michael Grant Direct
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