We can calculate using following methods
1 - High-Low method
2 - Regression analysis method
3 - Graphical method
Well if you're given the total cost of 0 units, then that would be your fixed cost as FC doesn't vary with any change in the total output produced (quantity).
There question is incomplete:There is no variable cost given for manufacturing method B. I'll assume it is b.It is unclear as to quantity for which the cost of manufacturing by both methods is the same. I'll assume it is the break-even quantity.The break even point is when the revenue from sales = cost of manufactureSo the question is asking for what quantity is the cost of manufacture using method A equal to the cost of manufacture using method B.cost of manufacture = fixed cost + variable cost × quantityMethod A: manufacturing cost = 40,000 + 23 × quantityMethod B: manufacturing cost = 52,000 + b × quantity→ 40,000 + 23 × quantity = 52,000 + b × quantity→ 23 × quantity - b × quantity = 52,000 - 40,000→ quantity(23 - b) = 12,000→ quantity = 12,000/(23 - b)I'll let you fill in the value of b; if b has no variable cost, b = 0.
1. Following are the methods to find fixed and variable costs if sales and cost is provided: 1 - High Low Method 2 - Scattered Diagram method 3 - Regression analysis method
A simi-variable cost has both variable and fixed factors. An organization's telephone and electric costs are simi- variable. These costs are fixed. However, if more electricity is used, or more telephone calls are made in a given period, they become variable.
a semi fixed cost moves upward in a step where semi variable cost begining at a given base level
You cannot. Sales and variable costs must be functions of the units (quantities) sold and produced.
Total Costs = Fixed Cost + Variable Cost soVariable Cost = Total Costs - Fixed Cost.
Fixed Cost - costs that do not vary with the quantity of output produced.The best example I can think of is when making Chocolate Chip Cookies. You need ingredients and supplies to make them:Chocolate Chips (Variable Cost)Flour (Variable Cost)Butter (Variable Cost)Sugar (Variable Cost)Eggs (Variable Cost)Vanilla (Variable Cost)Baking Soda (Variable Cost)Salt (Variable Cost)Bowls (Fixed Cost)Spatulas (Fixed Cost)Oven (Fixed Cost) The gas or electricity would be a variable costBaking Sheet (Fixed Cost)Cooking Rack (Fixed Cost)Mixer (Fixed Cost)Fixed Costs do not vary with Quantity. Variable Costs do vary with Quantity.
Well if you're given the total cost of 0 units, then that would be your fixed cost as FC doesn't vary with any change in the total output produced (quantity).
a variable can be defined as a quantity in an equation which explains the behaviour of the given function
Revenues Less: Variable cost Contribution Margin Less: Fixed Cost Net Income
Variable if the psychiatrist is paid at a certain rate hourly or daily; fixed if the salary is fixed for a given period (i.e.) annually).
Given the data on fixed and marginal Costs we require the number of units produced to ascertain the Average Total cost, from the MC we an get the TC but to calculate ATC we need the data on total quantity produced
There question is incomplete:There is no variable cost given for manufacturing method B. I'll assume it is b.It is unclear as to quantity for which the cost of manufacturing by both methods is the same. I'll assume it is the break-even quantity.The break even point is when the revenue from sales = cost of manufactureSo the question is asking for what quantity is the cost of manufacture using method A equal to the cost of manufacture using method B.cost of manufacture = fixed cost + variable cost × quantityMethod A: manufacturing cost = 40,000 + 23 × quantityMethod B: manufacturing cost = 52,000 + b × quantity→ 40,000 + 23 × quantity = 52,000 + b × quantity→ 23 × quantity - b × quantity = 52,000 - 40,000→ quantity(23 - b) = 12,000→ quantity = 12,000/(23 - b)I'll let you fill in the value of b; if b has no variable cost, b = 0.
Yes, the fixed cost become variable the more a given produce is produced. As the produce declines so does the variable as well.
Yes, the fixed cost become variable the more a given produce is produced. As the produce declines so does the variable as well.
1. Following are the methods to find fixed and variable costs if sales and cost is provided: 1 - High Low Method 2 - Scattered Diagram method 3 - Regression analysis method