Which Energy Performance Ratings Are Mandated on an NFRC Label

question 26

Essay

Which energy performance ratings are mandated on an NFRC label and which are discretionary to the manufacturer?

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Definitions:

Variable Cost

Costs that vary directly with the level of production or service activity, such as materials and labor costs, unlike fixed costs which remain constant regardless of activity levels.

Fixed Cost

Represents business expenses that remain constant regardless of the level of production or sales activity, such as rent, salaries, and insurance premiums.

Unit Variable Cost (UVC)

Variable cost expressed on a per unit basis for a product.

Variable Cost (VC)

The sum of the expenses of the firm that vary directly with the quantity of a product that is produced and sold.