Section 1 - Instruction

You've learned about fixed and variable costs and why they matter for business planning. Now let's practice analyzing cost structures for different business types.

Understanding your cost structure helps you price correctly and plan for profitability.

Engagement Message

Ready to dive into cost analysis?

Section 2 - Practice

Type

Sort Into Boxes

Practice Question

Let's analyze cost structures for different business models.

In business, fixed costs are expenses that stay the same regardless of how much you sell (like rent or salaries), while variable costs change depending on your sales volume (like materials or shipping).

Sort these businesses into the correct cost structure categories:

Labels

  • First Box Label: High Fixed, Low Variable
  • Second Box Label: Low Fixed, High Variable

First Box Items

  • Consulting firm
  • Software company
  • Online courses

Second Box Items

  • T-shirt printing
  • Handmade jewelry
  • Catering service
Section 3 - Practice

Type

Fill In The Blanks

Markdown With Blanks

A food truck owner is planning their business costs. Fill in the missing cost categories:

Fixed Costs: Truck payment, permits, insurance = $2,000/month
[[blank:Variable Costs]]: Food ingredients, fuel, supplies = $8 per meal sold
Break-even: Need to sell [[blank:250 meals]] monthly to cover fixed costs

Suggested Answers

  • Variable Costs
  • 250 meals
  • Startup Costs
  • Operating Costs
Section 4 - Practice
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