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it's related to the slide

1. Identify whether each of the below is a variable or fixed cost. Justify your answer - (30 pts). a. Advertisement b. Delivery and shipping charges c. Employees' Salaries d. Equipment Depreciation e. Rent payment of the store f. Sales commission Fixed costs Variable costs Figure 10.2: Value-Based Pricing vs. Cost-Based Pricing Cost-based pricing Determine product costs Design a good product Convince buyers of product's value Set price based on cost Value-based pricing Assess customer needs and value perceptions Set target price to match customer perceived value Determine costs that can be incurred Design product to deliver desired value at target price hitacan Major Pricing Strategies 2- Cost Based Pricing Cost Total Cost - FC + VC Cost -Variable Cats Total Dollars VC= Variable Cose (changes with Y) FC FCFixed Cost (a constant) Q (Quantity of output) Fixed (overhead costs are the costs that do not vary with production or sales level. Variable costs vary directly with the level of production Raw materials Packaging Total costs are the sum of the fixed and variable costs for any given level of production