BACKGROUND IN COMMENTS! PLEASE ANSWER ALL PARTS AND I WILL RATE BEST ANSWER a. What is the fixed cost of running this business for one year? b. What is the marginal cost of selling one set of earrings? Does the marginal cost change depending on quantity sold? If so, how? c. If Mia Solution a. If you add up the numbers, it would be $250 per month approx. As you can guess, major portion of it ($130 for paypal transaction charges and $50 for affiliates) is variable costs. That is if I have a bad month, I pay low on these and on good months, I pay more. If you convert the amount to Indian rupees, it is INR 11,000 approx. It is not such a huge amount if your business can generate atleast a thousand dollars in revenues every month. But the best part of this set up is that you can run your web based business for very little monthly costs ($10 for hosting, 5 for shopping cart and another 19 for email news letters) and scale up your operations as your revenue builds up. b..

1. BACKGROUND IN COMMENTS! PLEASE ANSWER ALL PARTS AND I WILL RATE
BEST ANSWER
a. What is the fixed cost of running this business for one year?
b. What is the marginal cost of selling one set of earrings? Does the marginal cost change
depending on quantity sold? If so, how?
c. If Mia
Solution
a.
If you add up the numbers, it would be $250 per month approx. As you can guess, major portion
of it ($130 for paypal transaction charges and $50 for affiliates) is variable costs. That is if I have
a bad month, I pay low on these and on good months, I pay more.
If you convert the amount to Indian rupees, it is INR 11,000 approx. It is not such a huge amount
if your business can generate atleast a thousand dollars in revenues every month.
But the best part of this set up is that you can run your web based business for very little monthly
costs ($10 for hosting, 5 for shopping cart and another 19 for email news letters) and scale up
your operations as your revenue builds up.
b.