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Cost Classification Amount per year Variable Cost: These cost will vary every month and/or year.Not constant. Direct Material $165,000 Direct Labor $50,000 Processing Charges $5,000

Cost Classification Amount per year Variable Cost: These cost will vary every month and/or year.Not constant. Direct Material $165,000 Direct Labor $50,000 Processing Charges $5,000 Shipping $6,000 Fixed Cost: These cost will be constant for the duration of the product. Electric $5,000.00 Rent $12,000.00 Insurance $500.00 Mixed Costs: Legal and Professional Fees $10,000 The legal and professional fees will vary from year to year.Also, we might not need them on a regular basis.

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