ECONOMICS

Detailed explanation-1: -Sales commissions are variable costs, as sales are different every month.

Detailed explanation-2: -Examples of variable costs include raw materials, sales commissions, packaging and shipping, manufacturing labor, and credit card fees.

Detailed explanation-3: -Examples of variable costs are raw materials, piece-rate labor, production supplies, commissions, delivery costs, packaging supplies, and credit card fees.

Detailed explanation-4: -Wages are variable costs in a firm, as the number of employees required will vary based on the demand for production, therefore the wages paid to the total number of employees will vary with the number of employees.

Detailed explanation-5: -What is a variable cost? A variable cost is any business expense that is directly correlated to your company’s production or sales. As your sales increase, variable costs will increase. If sales or production fall, then those costs will also fall.