What kinda cost?
Rent/Mortgage
What are fixed
The opposite of operating costs
capital expenditures
How profit is calculated
Revenue-expenses
How revenue is calculated
Sales price x # of units sold
Key metrics is how you measure your...
Success
Bonuses
What are variable
Costs directly related to production
Variable
When you make enough to cover your costs
Break Even Point
2 types of revenue streams
Transactional
Recurring
This is how fast you make your $$ back
Return on investment
Utilities
Fixed
Costs not related to production
Fixed
Rent=$100
Utilities=$100
Ingredients=$50
Sold 50 cupcakes for $4 each
What is the profit or loss?
Loss of $50
Charging for wifi is this type of revenue stream
Usage fee
efficient employees help with this key metric
payroll
Ingredients
What are variable
Diluting costs so that you dont spend as much per item made
economies of scale
Rent=$100
Wages=$900
Variable cost=$10
Sales price is $15
Whats the BEP?
200 units
Netflix and Hello Fresh have this type of revenue stream
Subscription
How many customers walk in vs how many make a purchase
conversion
Wages + Commission
What are mixed (semi-variable)
Determining how much a customer is willing to pay for something and then finding a way to make it for as little as possible to maximize profit
Price based costing
Fixed costs=100
Variable costs=$3
Sales price=$5
Whats the BEP?
Sold 52 units, did we profit or loss? How much
50 units
Profit
$4
When you want to manufacture Mickey Mouse themed clothes, you need to pay this to disney
Licensing fee
do you customers come back?
retention