Percent of Sales (%) 200 175 150 125 100 75 50 25 0 0 Figure 12-2 Average Fixed Costs LCM Nursery, Inc. 100,000 200,000 300,000 400,000 500,000 600,000 Sales Volume (S) Variable Costs Example - Let's say the Variable costs are 60% of each dollar of sales. .60 cents of variable costs are incurred when $1.00 of the product is sold. 5. Using figure - 12-2 - What would the total variable costs be if: Sales are at zero Sales are at $200,000 Sales are at $400,000 M CF