Variable cost per unit = (Total costs - Fixed costs) / unit volume
First option is correct answer.
If at a given volume total costs and fixed costs are known, the variable costs per...
1. Total costs may be computed as follows: a.(Fixed costs per unit × Unit volume) + Variable costs per unit b.Fixed costs per unit + (Variable costs per unit × Unit volume) c.Fixed costs + (Variable costs per unit × Unit volume) 2. A coefficient of determination of 0.91 means a.that the independent variable explains 91 percent of the cost. b.the model is significant 91 percent of the time. c.the two variables move together in the same direction and have...
At current activity volume of 100 units, total fixed costs are $1000 and total variable costs are $2000. Next month activity volume will decrease to 80 units. Predict unit cost (total cost per unit) for the next month.
Given the graphs above, calculate the total fixed costs, variable costs per unit, and sales price for Firm A. Firm B's fixed costs are $120,000, its variable costs per unit are $4, and its sales price is $8 per unit. Round your answers to the nearest cent.Fixed costs: $ Variable costs per unit: $ Sales price per unit: $ Which firm has the higher operating leverage at any given level of sales?A or BAt what sales level, in units, do both firms earn...
Question 3: Computations for fixed and variable costs At current sales volume of 100 units, fixed costs (FC) are $4 per unit and variable costs (VC) are $8 per unit. a) Compute total fixed costs at current sales volume. total FC400 b) Suppose that sales volume increases to 125 units. At this new volume, total FC FC per uni VC per unit = total VC Enter a number c) Write down the total cost equation: * volume (e.g., if TC...
At current sales volume of 100 units, fixed costs (FC) are $4
per unit and variable costs (VC) are $8 per unit.
Variable costs: A.vary per unit of output as production levels change. B. are fixed in total as production levels change. C. decrease per unit as production volume increases. D. are fixed per unit and vary in total as production levels change.
For a manufacturing company has total monthly fixed costs of $100,000, variable costs per units $10, income tax rate of 20%, targeted net income of $10,000. Assume all other variables do not affect the cost volume profit relationship, if sales in units (quantities) increase, fixed cost per unit as a percentage of unit sales 1. increase 2. decrease 3. remain constants 4. we cannot find, we need more information
Required: 1. Determine the total variable costs and the total fixed costs for the current year. Total variable costs Total fixed costs 2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year. Unit variable cost Unit contribution margin 3. Compute the break-even sales (units) for the current year. units 4. Compute the break-even sales (units) under the proposed program for the following year. units 5. Determine the amount of sales (units) that would...
For a manufacturing company has total monthly fixed costs of $100,000, variable costs per units $10, income tax rate of 20%, targeted net income of $10,000. Assume all other variables do not affect the cost volume profit relationship, if sales in units (quantities) increase, fixed costs per unit 1. increase 2. decrease 3. remain constants 4. we cannot find, we need more information
uestIO At current sales volume of 100 units, fixed costs (FC) are $5 per unit and variable costs (VC) are $10 per unit a) Compute total fixed costs at current sales volume. total FC- b) Suppose that sales volume increases to 125 units. At this new volume, total FC FC per unit - VC per unit total VC- c) Write down the total cost equation: TC- (e.g., if TC 500+2*volume, enter 500 in the first box and 2 in the...