Question

Please define two of the following terms and give an example of the relationship between the two terms you've chosen: Unit Contribution Margin, Break Even Sales, Break Even Units, Fixed Costs, Variable Costs, Mixed Costs

Answer 1

Mixed cost
It is cost which consists of both variable cost and fixed cost. In other words, cost incurred by variable factors and fixed factors is known as mixed cost.
For examply, a car need regular maintence charges which are variable cost that depends upon the car's requirment. Also, car need insurance which is a fixed cost. The total of these variable and fixed costs will give mixed cost.

Fixed costs
It is a cost which does not change with a change in level of output. In other words, cost incurred on fixed factors of production is known as fixed cost. For eg- rent, insurance.

Relationship
The relationship between the two is that fixed cost is a part of mixed cost. it can be shown with the following formula-
  Mixed cost= variable cost + Fixed cost
In short run fixed costs remains constant, therefore, won't affect and change in mixed cost unless variable cost(i.e cost incurred on variable factors of production) changes.

For example- A pen manufacturing industry estimates cost to be $0.3 per unit fixed cost and $0.5 per unit variable cost. Therefore, mixed cost will be $0.8 per unit (0.3+0.5).