Understanding Fixed and Variable Costs

The video tutorial covers the concept of cost per mile in the trucking industry, explaining its importance in determining profitability. It distinguishes between fixed and variable costs and provides a detailed calculation method for cost per mile. The tutorial also introduces a cost per mile calculator tool and announces upcoming video series on starting a trucking business and negotiation tactics.

What is the main topic of the video?

• Understanding costs per mile

• Negotiation tactics in trucking

• How to start a trucking business

• Monthly report analysis

Why is rate per mile important when booking loads?

• It is used to determine the truck's speed

• It helps in calculating taxes

• It determines the number of loads you can book

• It affects the gross income of the company

What does rate per mile represent?

• Variable costs

• Fixed costs

• Gross income

• Net income

What must be considered to calculate net income?

• Neither fixed nor variable costs

• Only fixed costs

• Only variable costs

• Both fixed and variable costs

Which of the following is a fixed cost?

• Fuel

• Maintenance

• Truck payments

• Tolls

Which of the following is a variable cost?

• Load board fees

• Fuel

• Trailer payments

• Insurance payments

How is the fixed cost per mile calculated?

• By dividing total fixed costs by total miles

• By multiplying total fixed costs by total miles

• By adding total fixed and variable costs

• By dividing total variable costs by total miles

What was the fixed cost per mile for the month of July?

• $2.57

• $0.77

• $0.69

• $0.08

What was the variable cost per mile for the month of July?

• $0.08

• $2.57

• $0.69

• $0.77

What is the total cost per mile for the month of July?

• $0.08

• $0.69

• $0.77

• $2.57