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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.

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Loraine Quigley

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1y ago

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Related Questions

How do you calculate variable cost per unit?

Variable cost per unit = Total variable cost / total number of units manufactured


How do you calculate breakeven analysis?

Fixed cost / (selling price - Variable cost per unit) --> Fixed cost ----------------------------------------------- (Selling Price - Variable Cost Per Unit)


How to calculate total variable cost per unit?

Easiest way: Total costs per unit - fixed costs per unit = variable cost per unit. Also recatting into accounting.


How do you calculate total vaiable cost per unit?

Total Variable Cost divided by Quantity of Output


When designing a costing system it is easiest to calculate total cost first and then per unit cost?

b


How can one calculate the average cost in economics?

To calculate the average cost in economics, you divide the total cost by the quantity of goods produced. This gives you the cost per unit, which is the average cost.


How do you calculate selling price that involve carriage cost?

Carriage is transportation cost. If you are selling the product in your store, you would calculate how much it cost to transport the goods to your store, then factor in the per unit shipping cost. Do a simple COGS (cost of goods sold) calculation. Add the per unit shipping cost to the cost make or buy the product per unit, then add your profit mark-up, say 30%.


Calculate the contribution margin per unit?

Contribution margin per unit is calculated by subtracting the variable cost of the item from the selling price of the item.


What data is used to calculate the break even point?

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


What is direct Cost per unit?

Direct cost per unit is that cost of unit incurred to manufacture one unit of product.Formula for direct cost per unit = total direct cost / total number of units.


How do you calculate the average cost in accounting?

To calculate the average cost in accounting, you add up the total costs and then divide by the number of units produced or sold. This gives you the average cost per unit.


How do you calculate break even point when average selling price is 180 per unit variable cost is 126 per unit and fixed cost is 540000 per year?

540,000/(180-126) = 10,000 units ($1,800,000 in Sales)