In2015,anairlinehadfixedcostsof£203000.Theairlinehadtotalcostsof£709000.Calculatethevariablecostoftheairlinein2015.Note:donotincludeacommainyouranswer.
Question
In2015,anairlinehadfixedcostsof£203000.Theairlinehadtotalcostsof£709000.Calculatethevariablecostoftheairlinein2015.Note:donotincludeacommainyouranswer.
Solution
To calculate the variable costs of the airline in 2015, you need to subtract the fixed costs from the total costs.
Here's how you do it:
- Start with the total costs: £709,000
- Subtract the fixed costs: £203,000
So, the calculation is £709,000 - £203,000 = £506,000
Therefore, the variable costs of the airline in 2015 were £506,000.
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