Fixed costs: related pages

sales price - variable cost per unit.

Gross profit divided by sales as a percentage.

Operational gearing is the effect of fixed costs on the relationship between sales and operating profits.

Overhead costs ÷ sales; the proportion of sales that is spent on overheads.

Overheads or administrative overheads; usually the most important element of operating costs; largely fixed costs with some variable elements.

Profit generated by a company’s operations before interest payments, tax or non operating income.

Semi-variable costs are those that have both fixed and variable elements.

On the other hand variable costs change with sales. Examples of variable costs are raw materials, shipping and depletion.