Fixed cost = total cost / sale volume
Variable cost = Total Cost/ fixed cost
Total Costs = Fixed Cost + Variable Cost soVariable Cost = Total Costs - Fixed Cost.
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Fixed cost / (selling price - Variable cost per unit) --> Fixed cost ----------------------------------------------- (Selling Price - Variable Cost Per Unit)
Find total cost when quantity = 0.
Total cost are calculated by adding variable cost and fixed cost FC+VC=TC
Calculate the fixed cost, variable costs, and break-even point for the program suggested in Appendix D.
Pretty much the same as you would calculate the cost for any business. You would add the fixed cost and the variable cost.
Cost of fixed assets includes the cost of asset as well as all costs which are incurred to bring asset to working condition like carriage and installation cost as well.
Well if you're given the total cost of 0 units, then that would be your fixed cost as FC doesn't vary with any change in the total output produced (quantity).
First of all total cost of product is identified and after that using high and low method variable and fixed costs are segregated