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).
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.
Easiest way: Total costs per unit - fixed costs per unit = variable cost per unit. Also recatting into accounting.
No fixed costs do not change where variable do depending on market and amount ordered among other varies.
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.
false
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.
Fixed cost / (selling price - Variable cost per unit) --> Fixed cost ----------------------------------------------- (Selling Price - Variable Cost Per Unit)
Total cost = variable cost + fixed cost fixed cost = 50 fixed cost per unit = 50 / 500 = .1 total cost = 2 + .1 = 2.1 per unit
Easiest way: Total costs per unit - fixed costs per unit = variable cost per unit. Also recatting into accounting.
No fixed costs do not change where variable do depending on market and amount ordered among other varies.
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.
Total cost = cost per unit x units produced or Total cost = cost per unit x units sold or Fixed costs + Variable costs
Total cost = cost per unit x units produced or Total cost = cost per unit x units sold or Fixed costs + Variable costs
false
when number of activity or units decreases
60000 is fixed cost variable cost is 10 per unit sales is 25 per unit so contribution = selling price - variable cost 25 - 10 = 15 break even point (in units) = fixed cost/ contribution = 60000/ 15 = 4000 units.
25