Question

In Unit 2 we look at fixed, variable and mixed costs. Using a TV show, movie, story, or cartoon, identify two fixed costs and two variable costs. Include a quick explanation.

Answer 1

In a TV show,

Fixed Costs are :

• Rent of the Studio - which is used throughout the show for all episodes, hence the rent of the studio is a fixed cost
• Production staff salaries - the common staff which are involved in the shooting everyday and its background work to make the show finalization and present for telecast

Variable Costs are :

• Set construction - As we don't need daily a special set, apart from studio depending upon the show requirements few sets are constructed hence these are variable expenses ( such as New year set, Christmas, events like 100 episodes, 500 episodes these all need some special sets and decorations in a TV show)
• The costumes used in the show
• The training cost- for new artists or a basic training for the show such as the gestures, stills, anchoring for a better looks all these are required only at the initial stage of a show and when new members join.