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If variable costs are 70 percent of sales fixed costs are 360000 and each unit is 30 how many units must be sold to break even?
Wiki User
∙ 14y ago
8400 units.
Wiki User
∙ 14y ago
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The total cost is the sum of what?
When you see TC = Total Costs on a break even chart it stands for Variable, Semi-variable and fixed costs....thus the total cost.
Is Janatorial Costs a fixed mixed or variable cost?
The three types of cost you are referring to are Fixed, Semi Variable and Variable Costs. On a well though out COA the janitorial costs would fall under administrative costs. Thus fixed.
Firms with a high degree of operating leverage are?
Have a high amount of fixed costs relative to their variable costs. DOL= CM / Net Income We derive CM by the eqaution of Selling Price - Variable Costs If a firm has high variable costs relative to their selling price then they will have a small CM and therefore their DOL will decrease. Have a high amount of fixed costs relative to their variable costs. DOL= CM / Net Income We derive CM by the eqaution of Selling Price - Variable Costs If a firm has high variable costs relative to their selling price then they will have a small CM and therefore their DOL will decrease.
Total cost is the sum of the?
fixed and variable costs
What are the three types of costs company might occur how do they differ?
1. Fixed costs. These types of costs do not vary with output in the short term. An example might be rent costs for premises. 2. Variable costs. These are costs that vary directly with output and will be business specific. A manufacturing industry making plastic widgets will see the cost of their plastic raw material vary directly with production. 3. Semi-variable costs, or 'stepped' costs. These are costs fixed over a small range of output but variable over a longer range of output particularly at certain critical levels. They may 'step-up' as with utility bills or 'step-down' as with quantity discounts. Please note that all costs are variable costs if you take a long enough time frame.
What is the total revenue at break even point if Ace corporation's variable costs are equal to 43 percent of sales revenue and their fixed costs per month are 600000?
Revenue at BREAK EVEN point is $0.00
What are the principles of break even analysis?
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.
What would you expect to be the effect of a reduction in variable cost on the break even position and why?
The Break Even Position(B.E.P.) is the point at which your sales cover your variable costs(contribution) and also your fixed costs but render no profits- 0 = Sales-Variable Costs-Fixed Costs If the above equation is satisfied, then the sales value is taken as break even point. So if a reduction in variable expenses occur, the break even point will also reduce.
What is the break-even point when variable costs are 20 percent of total revenue and fixed costs are 40 million per year?
Break even point = Fixed Cost / contribution margin ratio Variable cost = 20% So Contribution margin = 80% Breakeven point = 40000000 / .8 = 50000000
Why is it important to separate variable and fixed costs?
it is important to separate variable and fixed costs. Another reason it is important to separate these costs is because variable costs are used to determine the contribution margin, and the contribution margin is used to determine the break-even point.
Can you calculate the fixed cost variable costs and break-even point for the program suggested in Appendix D?
Calculate the fixed cost, variable costs, and break-even point for the program suggested in Appendix D.
The total cost is the sum of what?
When you see TC = Total Costs on a break even chart it stands for Variable, Semi-variable and fixed costs....thus the total cost.
Using above data ; Determine the break-even?
To calculate the break-even point, you need to know the fixed costs, variable costs per unit, and the selling price per unit. Break-even point (in units) = Fixed Costs / (Selling Price per Unit - Variable Cost per Unit) Without specific values for fixed costs, selling price per unit, and variable cost per unit, I can't provide you with an exact break-even point. Please provide these values, and I'll be happy to help you calculate the break-even point.
What is the break even revenue if total fixed costs are 2160000 and variable costs are 3000000?
Breakeven revenue is the amount required to make $0 profit once total fixed and variable costs have been deducted so the answer is 2160000 + 3000000 = $5160000
What happens to the break even point if fixed costs increase but variable cost and price remain the same?
the break even point goes up
How is CVP impacted by changes in fixed and variable costs?
A change in variable cost affects the contribution margin ratio. A change in fixed cost affects the break-even point . An increase in these costs affect the firms profit.
Are variable costs included in operating costs?
Variable operating costs + fixed operating costs = total operating costs.
