I was doing some work on a company which required me to calculate fixed and variable costs.
I did a rough calc and subtracted EBIT from Revenue and multiplied by 80% ( which is my assumption of fixed costs). Is this right?
I was doing some work on a company which required me to calculate fixed and variable costs.
I did a rough calc and subtracted EBIT from Revenue and multiplied by 80% ( which is my assumption of fixed costs). Is this right?
Brah, as a general rule 80% of something is the anti-definition of “variable”
You should probably study their income statement a little more and see what correlates with revenue and what does not