Discretionary costs are also called as Capital expenditure that can be avoided without any impact of profitability.
Discretionary Fixed costs are costs for a period specific costs which can be reduced without any effect of profit for that period.
Committed Fixed costs are costs that business cannot eliminate from budget.
Discretionary costs: | |
Grounds Maintenance | $7,800 |
Office remodeling | $23,500 |
Total | $31,300 |
Discretionary Fixed costs: | |
Advertising | $23,200 |
Research and Development | $47,300 |
Total | $70,500 |
Committed Fixed Costs: | |
Depreciation | $49,700 |
Health insurance for the company's employees | $24,000 |
Management Salaries | $91,000 |
Payment of long term debt | $39,500 |
Property tax | $31,750 |
Total | $235,950 |
please provide formulas and answers Discretionary and Committed Fixed Costs Identify and compute total discretionary fixed...