Question: Are the following Fixed costs or Variable costs? If it is a Fixed Cost, is it a recurring Fixed cost or one-time Fixed cost? 1.
Are the following Fixed costs or Variable costs? If it is a Fixed Cost, is it a recurring Fixed cost or one-time Fixed cost?
1. Honda will build a SUV manufacturing plant in Thailand at an estimated cost of $360 Million.
2. The labor costs of producing each SUV are $5000.
3. Honda will offer a cash rebate of 10% to every buyer.
4. Honda will run an advertising campaign of $142,880,000 to launch the new SUV in the US market.
5. The salaries and overhead costs are $320,000 per month.
6. The raw material costs are $4200 per SUV.
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