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Managing Fixed and Variable Costs for Organization

Organizations typically have either high fixed costs or low fixed costs, and it is important to understand how business decisions differ in organizations with high fixed costs from organizations with low fixed costs. Assignment Steps Resources: Tutorial help on Excel® and Word functions can be found on the Microsoft® Office website. There are also additional tutorials via the web offering support for Office products. Hoover's Company Profiles by ProQuest located in the University Library Choose two publicly-held organizations. (Amazon & Wal- Mart) One organization must have high fixed costs and low variable costs, and the other organization must have low fixed costs and high variable costs. Create a minimum 4-slide Microsoft® PowerPoint® presentation, including detailed speaker notes or voiceover, analyzing the methods of managing cost depending on the cost construction. Research the University Library for recent publications regarding each company and the industry data. The analysis should include the following: • Analyze your two chosen companies' cost construction. Do the companies have high fixed costs or low fixed costs? Do the companies have high variable costs or low variable costs? What evidence presents itself to support your findings? • In Excel®, chart the relationship between total cost and the number of units produced (output) for each organization/company. Plot two lines on the graph - one line for each company you analyzed. Copy your graph from Excel® and paste it into your PowerPoint® presentation

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