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 Costs = Fixed Cost + Variable Cost soVariable Cost = Total Costs - Fixed Cost.
Average total cost is the average of all your costs. This is your Fixed Costs and your Variable costs. Average Variable Cost is the average of your costs that can fluctuate.
Variable operating costs + fixed operating costs = total operating costs.
Variable Costs and fixed costs
To calculate the Total Cost without Total variable cost, one should estimate for the variables or substitute for the variables with a variable such as X or Y and then solve for the approximate total cost.
Total Costs = Fixed Cost + Variable Cost soVariable Cost = Total Costs - Fixed Cost.
Easiest way: Total costs per unit - fixed costs per unit = variable cost per unit. Also recatting into accounting.
Total variable costs are the sum of expenses which change proportionally as the price of services and goods fluctuate. The total marginal costs above produced units is also referred to as total variable costs.
Average total cost is the average of all your costs. This is your Fixed Costs and your Variable costs. Average Variable Cost is the average of your costs that can fluctuate.
Variable operating costs + fixed operating costs = total operating costs.
Total cost is determined by adding fixed costs and variable costs together. fixed cost + variable cost = total cost
First of all total cost of product is identified and after that using high and low method variable and fixed costs are segregated
Total Variable costs divided by the cost of units
If material cost is variable cost then yes by decreasing material cost company can reduce total variable cost.
When you see TC = Total Costs on a break even chart it stands for Variable, Semi-variable and fixed costs....thus the total cost.
To calculate your break even point you need to total your fixed costs and your variable costs (separately) . The equation is fixed costs ÷ (price - variable costs). Variable costs are your costs associated with production. If u produce one additional unit variable cost will increase and fixed costs will not. When you reach your break even point you have covered all if your fixed costs (for the month, for example). All units sold after break even will bring net income for the period since your fixed costs are covered.
Variable Costs and fixed costs