Identify variables ,fixed and simi variables

Question

Revenue

Food and beverage

Catering

Concessions

Room rental & fees

Other

Total revenue

Cost of goods sold

Gross profit

Operating exp. :

Salaries and wages

Full time salaries (fixed)

Part time wages (variable)

Total salaries and wages

Benefits (related to salaries and wages)

Insurance - workers comp

Payroll taxes

Total payroll exp.

Building operation :

Building supplies

Data processing

Equipment maintenance (electrical, HVAC, other)

Insurance - non worker comp

Electricity

Gas

Water and waste

Depreciation

Miscellaneous event costs :

Equipment rental (for event)

Linens (for events)

Other G&A

Answer 1

I would start with fixed costs first. Electric, gas, water and waste, and depreciation are all fixed since they will be billed or occur no matter if the building is used or not. Building supplies, data processing, and both types of insurance are fixed costs as well since they're incurred regularly. Equipment maintenance is semi variable because some things have standard maintenance periods (fixed), but then if they're used more, they could require extra repairs (variable).

Everything related to the event such as room and equipment rentals, food and beverages, catering, concessions, linens, revenues, and cost of goods sold are variable since they change with the number of events held. Total salaries and wages, along with payroll taxes, and benefits are semi variable since they include both part-time and full-time employees.