For example, if the price of a product is $100.

Variable expense ratio formula. Variable expense ratio expresses variable expenses as a proportion of a company’s sales. Let us take the example of a mutual fund to illustrate the computation of expense ratio. The expense ratio is a snapshot view of how.

It is part of cost. However, an actively managed fund with the same expense ratio of 0.9% would be considered good. For example, let’s say a mutual fund incurred $2 million in operating costs for a given.

The variable expense ratio, sometimes called the variable cost ratio, is an accounting tool used to show an organization’s variable production costs as a percentage of net sales. The expense ratio is a measure of what it costs an investment company to operate a mutual fund. This difference is important as management plans out production runs and develops a market strategy.

Expense ratio is expressed in percentage. Cost of flour, butter, sugar, and milk: The variable expense ratio, sometimes called the variable cost ratio, is an accounting tool used to show an organization’s variable production costs as a percentage of net sales.

Expense ratio = total annual operating expenses / average fund assets. Total variable cost = 1000 * 20; The numerator may be an individual expense or a group of expenses such as administrative expenses, sales expenses or.

The rent expense will always stay the same however. If amy did not know which costs. Variable costs, fixed expenses, revenues, contribution margin and profits.