bloodnock wrote:
Now heres what I see as the nonsenical and impossible submission form, Do you think this can be filled in, you start at the Top with your normal Price for the month then it simply subtracts all costs both constant and variable as well as subtracting profit....if you do that it will always end up as ZERO at the final total.
I kind of see what you're getting at, but strictly speaking I'm not sure if it does tell you to subtract fixed or constant costs (I assume fixed and constant means much the same thing here).
So say you normally charge £100. Your fixed costs are insurance and licence fees of £30.
Your variable costs are fuel and tyres at £50. So your profit is £20
So what they're asking you to do is:
£100 which is contract value, less
(£50) which is variable costs
(£20) which is your profit.
So 100 - 50 - 20 = £30
Thus £30 is the fixed costs, which would be reimbursed.
So I think the important point is that they're *not* asking you to subtract fixed or constant costs, so those costs should be the result when you've done the sums.
(My example is just a very simplied thing, and obviously it's more involved than that.)
But that's just my quick impression. Will have a look either later tonight or tomorrow, or maybe someone else has done a similar form and could therefore advise.
But it seems a roundabout way to do it all. If you know all these figures, then by implication you should know your constant(fixed) costs, so why don't they just ask for them?
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but seems a very convoluted method they're using to get to the desired figure.