Variable cost per unit is not dependent on how much units sold but it is dependent on how many units have been produced.
For Example:
Total units produced: 1000
Total variable cost :10000
Variable cost per unit = 10000/1000 = 10
89900
Sales price is the price at which unit of product is sold while variable cost is that cost of unit which in manfuacturing process varies with change in level of production directly.
Variable cost per unit = Total variable cost / total number of units manufactured
Contribution margin is that amount from sales revenue which a single sold unit contribute to recover the fixed cost incurred to manufacture that unit after recovering the variable cost.
Because variable cost per unit took an arrow to the knee.
89900
You cannot. Sales and variable costs must be functions of the units (quantities) sold and produced.
Sales price is the price at which unit of product is sold while variable cost is that cost of unit which in manfuacturing process varies with change in level of production directly.
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
Variable cost per unit = Total variable cost / total number of units manufactured
Variable cost per unit= Total Variable costs($ amount) divided by Production units
Contribution margin is that amount from sales revenue which a single sold unit contribute to recover the fixed cost incurred to manufacture that unit after recovering the variable cost.
Total Variable Cost = Number of Units * Variable cost per unit
Because variable cost per unit took an arrow to the knee.
if you are given the labour from 0,1,2,3,4,5,6 and total product from 0,20,45,65,80,90,95 and total fixed cost N$ 300 and more and more unit labour cost at N$ 100 given all this caculate the total varible cost and the total cost
Easiest way: Total costs per unit - fixed costs per unit = variable cost per unit. Also recatting into accounting.