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
To calculate the average fixed cost for a business, you divide the total fixed costs by the quantity of output produced. This gives you the fixed cost per unit of output.
VC= total cost- fixed cost This formula will not give you the variable cost per unit... you can find VC/unit by high/low method. e.g., no. of units cost 200 7000 300 8000 400 9000 1. select the highest and lowest no. of units (400 and 200)and their costs(9000 and 7000). 2. VC/unit=cost highest no. of products-cost of lowest no. of products/highest no. of products- lowest no. of product 3. VC/unit=9000-7000/400-200 =2000/200 =10