Hello, This is my first time using this site. I am currently a college student earning my degree in Business Management and seem a little stump on the following question.


Clyde's Marina has estimated that fixed cost per month are $240,000 and variablr cost per dollar of sales is $0.60. How do I figure the relational selling price and varaible cost with just the information given?

I'm not positive what they mean by a "relational selling price and variable cost." Variable costs are 60% of sales price (.60 per $1), but I don't know if that's what they mean, and I don't see what fixed costs have to do with it.