BREAKEVEN & USAIIRD

BREAKEVEN & USAIIRD

Assignment 5.2: Using USAIIRD to Identify Your Variable and Fixed Costs

 In determining the operating costs of a business, USAIIRD represents the seven most frequent categories: Utilities, Salaries, Advertising, Insurance, Interest, Rent, and Depreciation.

BREAKEVEN & USAIIRD

Use this template to identify some of the operating costs that would be incurred by implementing your business idea. Categorize each as either a fixed or a variable cost, explain your choice, and add a rough estimate of what you think the monthly cost might be.

Item Estimated Monthly Cost Explanation (Why Fixed vs. Variable)
Fixed Costs:
$
$
$
$
$
$
$
$
Variable Costs:
$
$
$
$
$
$
$
$
Estimated Monthly Costs

 

$

 

 After watching the included videos and reviewing the instructional materials for Chapter 4

BREAKEVEN & USAIIRD

Please complete the fixed and variable cost Word Doc included in the Chapter 4 module and upload the file to these assignments. MUST include USAIIRD for fixed cost and any possible variable costs for your business. Remember to include labor in your variable cost. Salaries are fixed, labor is variable depending on how many products you make, etc.

Included with the assignment is a 150-word essay to include the items listed below:

BREAKEVEN & USAIIRD

  1. Explain the Nature/Type of business the fixed and variable costs are for…
  2. Total Monthly Fixed Cost and Variable Cost and Total cost for both. Is there strong “seasonality” to your business? Why or why not?
  3. Calculate the breakeven amount per month
  4. Calculate the breakeven if you increase your salary by $5000 per month

This assignment will continue on to be part of the Mid-Term Exam Assignment

BREAKEVEN & USAIIRD

Name of Book: Entrepreneurial Finance, Sixth Edition, Leach/Melicher

Internal Operating Schedules Chapter 4: Section 4.4 Pages 138-142 Partial-Credit earned with A-D worth 25 points each read the section on Internal Operating Schedules and refer to the figures and tables to complete A-D

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