C. Cost Structure Discussion 1. Types of fixed costs 2. Types of variable costs 3. What is the difference between costs in the long run and between costs in the short run? 4. Is it possible for your company to operate at a loss in the short run? 5. Assess your company's ability to adjust to changing market condition. Cost Structure Discussion Notes: To estimate the fixed and variable costs based on annual total revenue and gross profits: 1. Download the spreadsheet Cost Estimate Worksheet (CEW). 2. Go to your company's website on yahoofinance.com. 3. Scroll down to Financials and click on it. 4. Find the company's total revenue and gross profits. 5. Open the Cost Estimate Worksheet (CEW) and enter your information. You will overwrite the existing sample information. Enter the ticker symbol in cell Al. . Enter total revenue for three years in column B (B2, B3, and B4). Enter gross profit for three years in column C. (C2, C3, and (4) . The spreadsheet will automatically calculate the fixed and variable costs. Fixed costs will display in column E; Variable costs will display in column F. G J 1 AAPL Revenue - Profit = Total Cost = Fixed Cost + Variable Cost 2 Year 1 $19,315,000 $1,989,000 $17,326,000 $1,844,508 $15,481,492 3 Year 2 $24,006,000 $3,496,000 $20,510,000 $1,844,508 $18,665,492 4 Year 3 $32,479,000 $4,834,000 $27,645,000 $1,844,508 $25,800,492 6 Instructions: Please enter the ticker symbol for your company in the cell A1 (in this case: AAPL - Apple, Inc.) For years 1- 3 please enter the revenues (cells B2 - B4) and profits (cells C2 - C4) for your company 9 View of the Cost Estimation Worksheet (CEW) Spreadsheet