My fixed cost of selling these books online will be the shipping and packaging

My fixed cost of selling these books online will be

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My fixed cost of selling these books online will be the shipping and packaging rates for the books. The reason for this is because no matter how many I sell, I will still have to pay the same amount of shipping cost. Another fixed cost for selling books online will be the monthly fees that are due to keep selling on the website. In addition, there is still payments for storage that needs to be considered. These are fixed because the expenses will have to be paid every month no matter how much or how little you sell. The variable cost of selling books online will be different books and different size books. The reason for different books having a variable cost is because some books may cost more to produce or be more difficult to produce, resulting in a variable cost. In addition to the production of books, advertisement will have a variable cost based on how much or how little advertisement is done. 3-2 My book selling business can benefit for economies of scale because of the large volume of books being sold. This large number of books will cause production to be cheaper because production cost will be lowered because the fixed cost will be out weighed by the large amount of output. The reason for this is because I can mass produce books at a lower price per book. With a mass inventory of books there will be a chance of free notoriety and advertisements from big companies. When the companies recognize my large inventory of books they might offer me free discounts or incentives to sell on their websites like eBay, amazon, or even Chegg. With more books being sold in bulk the manufacturing price will still stay fixed while the profits from selling the books will go up. This will benefit me by having low production cost and higher revenue.
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Question 4-1 The fixed cost of starting a car washing businesses to consider would be the managers salary, peoples wages, equipment, rent, and insurance for the business. The salary payment for the managers are at a fixed rate because salary means they get paid a set amount and the amount of time they work does not affect the amount they earn. The managers salary is also not affected by the amount of production. The amount for renting or buying equipment will be the same as the of these things are fixed and do not vary with that much price since there is a perfect competition selling all the equipment. The rate of production does not change the amount paid for the equipment making it a fixed cost. Rent for the property is a fixed rate for the month. Earning more will not increase or decrease the price of rent and earning less won’t reduce or increase rent either. Lastly, the insurance for the company is a fixed expense every month or every year. The
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