Fixed Costs of Fruit Wine

Fixed costs of Fruit Wine

Depreciation costs: The equipment you will be using will go losing value with time, this is why it will be necessary to separate an amount of money to be able to replace them when they break down or deteriorate. These costs are calculated by dividing the price of each active between its life span and dividing the result between 12. This means that you will need to separate a certain amount every month to be able to repair the equipment and deteriorated materials.

Administrative expenses
These include the monthly costs such as rent, electricity, mobility, office supplies, etc. In some cases this also includes the administrative personnel.

To sum this up, in order to obtain the production costs for 350 liters of tangerine wine a month, you will need to add the variables and the fixed costs.

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