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 local business types.

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

Engagement Message

Ready to dive into cost analysis?

Section 2 - Practice

Type

Sort Into Boxes

Practice Question

Let's analyze cost structures for different local 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 local 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

  • Neighborhood café
  • Local yoga studio
  • Community bookstore

Second Box Items

  • Wedding catering
  • Custom landscaping
  • Home cleaning service
Section 3 - Practice

Type

Fill In The Blanks

Markdown With Blanks

A neighborhood restaurant owner is planning their business costs. Fill in the missing cost categories:

Fixed Costs: Rent, permits, insurance = $4,000/month
[[blank:Variable Costs]]: Food ingredients, utilities, supplies = $12 per meal sold
Break-even: Need to sell [[blank:334 meals]] monthly to cover fixed costs

Suggested Answers

  • Variable Costs
  • 334 meals
  • Startup Costs
  • Operating Costs
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