General
How do you calculate variable unit costs and total annual costs?
Annual units sold, 1000. Raw materials annual cost 650. Building rent annual cost 9000. If sales volume increased to 6000 units and 8000 units, what is the total annual cost and unit cost for fixed variable?
Cost per unit of raw material=650/1000= 0.65
Fixed cost (Rent) =9000
Fixed cost per unit= 9000/1000= 9.00
If the sales volume increases to 6000 units, then total cost= 12900 and cost per unit = 2.150
Variable cost+ fixed cost= (0.65*6000) + 9000= 12900 / 6000= 2.15
If the sales volume increases to 8000 units, then total cost= 14200 and cost per unit = 1.775
(0.65*8000) + 9000= 14200 / 8000 = 1.775
Cost per unit of raw material=650/1000= 0.65
Fixed cost (Rent) =9000
Fixed cost per unit= 9000/1000= 9.00
If the sales volume increases to 6000 units, then total cost= 12900 and cost per unit = 2.150
Variable cost+ fixed cost= (0.65*6000) + 9000= 12900 / 6000= 2.15
If the sales volume increases to 8000 units, then total cost= 14200 and cost per unit = 1.775
(0.65*8000) + 9000= 14200 / 8000 = 1.775
Advertisement
More from this specialization
- What is the economy in Bulgaria like?
- What is the marginal cost of capital?
- What is Collateral management?
- What does macroeconomics mean?
- How does one arrive at a competitive pricing strategy for a multi-service practice where there are no specific products in question?
- You have a painting that is $320 that is selling for 20 percent off. How much is the discounted price?