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The building of the restaurant - Essay Example

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Cost for the Raw material is variable and the cost of building rent is fixed because raw material cost is based on sales volumes. If the sales volume will increase then the total cost for the raw material will be increased and vise versa. The cost of building rent is fixed because the restaurant will have to pay a certain fix amount of rent every year hence the cost will be considered as fixed cost.
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The building of the restaurant essay example
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