Each. ie, 12 cents each or $5.00 ea.
Total Variable Cost divided by Quantity of Output
Total Cost = Variable Cost + Fixed CostVariable Cost = 4 per UnitTotal Units to produce = 15000Variable Cost = 15000 * 4 = 60000Total Cost = 60000 + 100000Total Cost = 160000
Well, you first have to look at fixed and variable costs in total as well as on a per unit basis. Fixed costs remain the constant (or fixed) in total. However, on a per unit basis they aren't constant (variable). As units produced increase (or whatever activity base) then the fixed cost per unit decreases. Fixed example: If rent is $8,000, then the total rent will still be $8,000 every month whether or not the company makes 100 products during the period or 1,000. However, using the 100 and 1,000 units as an example, the per unit cost decreases. When the company makes 100 units, the fixed cost per unit is $80 ($8,000/100 units). When the company makes 1,000 units, the fixed cost per unit is $8 ($8,000/1,000 units). The opposite applies for variable costs. Variable costs, by their nature, change with the change in units produced (or again, any other activity base the company uses, such as machine hours or labor hours). Therefore, there will be a different total for 100 units produced and 1,000 units produced. However, the unit cost never changes. Variable example: If a product that a company produces requires a certain part, this is a variable cost. Let's say the cost of the part is $10. The total variable cost for 100 units is $1,000 ($10*100 units), and for 1,000 units it's $10,000 ($10*1,000 units). However, in each case, the variable cost per unit remained at $10. Hope this is what you were looking for!
The minimum acceptable transfer price for a division with excess capacity would be the variable cost per unit, which in this case is 8. This is because the division has excess capacity and is able to produce the goods at a lower cost than the selling price, so it would make sense to transfer the goods to another division or sell them to an external customer at a price that is at least equal to the variable cost per unit. If the division were to transfer the goods to another division or sell them to an external customer at a price that is lower than the variable cost per unit, it would not cover its variable costs and would be operating at a loss. On the other hand, if the division were to transfer the goods to another division or sell them to an external customer at a price that is higher than the variable cost per unit, it would be able to cover its variable costs and potentially earn a profit. It's worth noting that the fixed costs of the division are not relevant to the minimum acceptable transfer price, as these costs have already been incurred and cannot be avoided. The division would need to consider the fixed costs when determining its overall profitability, but they do not affect the minimum acceptable transfer price for the goods. My recommendation: ππ π½βο½οΌ°Ε://Ε΄Οπ.ΰΉΞΉαΆΞ―ππ£Οπ»α΄ββΉ.Δπο½/π£β¬πΞΉβ/βΈββ·βΊοΌοΌ/ππ·πππΚ·ππ¨πΓο½π¬/ β―π
because the fixed cost is absorbed into the number of units produced.
Direct cost per unit is that cost of unit incurred to manufacture one unit of product.Formula for direct cost per unit = total direct cost / total number of units.
nit cost is the average cost of making a product and cost per unit is the marginal cost
Easiest way: Total costs per unit - fixed costs per unit = variable cost per unit. Also recatting into accounting.
Cost per Unit = total cost of production / total units produced
unit pair
Lego's cost per unit is about 5 USD. Lego's price per unit depends on how large the unit is. If it is large it may cost 5.50 USD. But the average is about 5 USD.
Cost unit is a unit of production, service or time or combination of these, in relation to which costs may be ascertained or expressed. Ex: Toy making: Batch costing, unit of cost: per batch (ex: $500 per batch) Advertising: Job Costing, unit of cost: per Job Hospital: Operating costing, unit of cost: per patient day
Each. ie, 12 cents each or $5.00 ea.
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).
Because variable cost per unit took an arrow to the knee.
Variable cost per unit = Total variable cost / total number of units manufactured
Formula for Contribution margin is as follows: Contribution margin = Sales price - variable cost So as you can see from above formula that sales price per unit minus variable cost per unit is contribution margin per unit