Assignment Questions
In Section 2, you learned about costs and profit. Now, you'll apply what you
learned.
1. Choose a real or made up example of a company, and describe at least
three variable costs the company has. (1-3 sentences. 1.5 points)
Three variable costs for Tesla include the cost for wheels, the cost for
materials for the frame of the car, and the cost to pay all the different
employees.
2. Choose a real or made up example of a company, and describe at least
three fixed costs the company has. (1-3 sentences. 1.5 points)
Three fixed costs for Tesla include the rent for Tesla stores, the price of basic
utilities such as electricity, and the price for shipping the vehicles.
3. Is gross profit or net profit more important to consider when you're deciding
how successful and profitable a company is? Why? Explain. (1-3 sentences.
2.0 points)