Descriptive question on variable and fixed costs and CVP analysis.
1. How do variable costs and fixed costs differ? Give an example of each.
2. Analyze your personal expenses on a variable and fixed basis. What are some of your personal fixed costs and variable costs? What would cause them to change?
3. What is C-V-P analysis used for? In the process of using C-V-P analysis, what does it mean to "break even"?