Learn to study your Business Studies curriculum properly.
The fixed cost is the same regardless of the number of units produced.
The variable costs are the costs of producing x number of units.
The break-even point is where value of sales = fixed costs + variable costs.
Yes fixed cost remain fixed in overall amount but it varies as per unit for example if one unit produced fixed cost 50000 per unit fixed cost 50000 but if 2 units produced fixed cost remains 50000 but per unit fixed cost changed to 25000 (50000/2).
Easiest way: Total costs per unit - fixed costs per unit = variable cost per unit. Also recatting into accounting.
Yes fixed cost varies between units as total overall fixed cost amount remains same but increase in number of units change the per unit fixed cost for example fixed cost of 10 will be 10 per unit in case of 1 unit produce and fixed cost per unit will be 1 in case of 10 units produced.
Following data is required to calculate break even point: 1 - Sales revenue or sales price per unit 2 - variable cost per unit 3 - fixed cost
540,000/(180-126) = 10,000 units ($1,800,000 in Sales)
Fixed cost / (selling price - Variable cost per unit) --> Fixed cost ----------------------------------------------- (Selling Price - Variable Cost Per Unit)
Yes fixed cost remain fixed in overall amount but it varies as per unit for example if one unit produced fixed cost 50000 per unit fixed cost 50000 but if 2 units produced fixed cost remains 50000 but per unit fixed cost changed to 25000 (50000/2).
Easiest way: Total costs per unit - fixed costs per unit = variable cost per unit. Also recatting into accounting.
Yes fixed cost varies between units as total overall fixed cost amount remains same but increase in number of units change the per unit fixed cost for example fixed cost of 10 will be 10 per unit in case of 1 unit produce and fixed cost per unit will be 1 in case of 10 units produced.
Following data is required to calculate break even point: 1 - Sales revenue or sales price per unit 2 - variable cost per unit 3 - fixed cost
To calculate the break-even point, you need to know the fixed costs, variable costs per unit, and the selling price per unit. Break-even point (in units) = Fixed Costs / (Selling Price per Unit - Variable Cost per Unit) Without specific values for fixed costs, selling price per unit, and variable cost per unit, I can't provide you with an exact break-even point. Please provide these values, and I'll be happy to help you calculate the break-even point.
540,000/(180-126) = 10,000 units ($1,800,000 in Sales)
BreakEven = Total Fixed Cost/Contribution Per Unit Contribution = selling proce-varible cost = 10-5 = 5 Contribution per unit B.E = 10,000/5 = 2000 Units
Annual units sold, 1000. Raw materials annual cost 650. Building rent annual cost 9000. If sales volume increased to 6000 units and 8000 units, what is the total annual cost and unit cost for fixed varible? ---------------------------- Cost per unit of raw material=650/1000= 0.65 Fixed cost(Rent)=9000 Fixed cost per unit= 9000/1000= 9.00 If the sales volume increases to 6000 units, then total cost= 12900 and cost per unit = 2.150 Variable cost+ fixed cost= (0.65*6000) + 9000= 12900 / 6000 = 2.15 If the sales volume increases to 8000 units, then total cost= 14200 and cost per unit = 1.775 (0.65*8000) + 9000= 14200 / 8000 = 1.775
Total cost = variable cost + fixed cost fixed cost = 50 fixed cost per unit = 50 / 500 = .1 total cost = 2 + .1 = 2.1 per unit
Variable cost per unit = Total variable cost / total number of units manufactured
Contribution margin per unit is the contribution which contribute by sales of one unit for the recovery of fixed cost after fulfiling the variable cost of product.