Question

Using the reply button post as ONE response to all topic questions then submit a quality reply to one other post. Stating good comment, I agree or I like the way you put that is not considered a quality post unless it includes reasons why. Identify each question first then your response..... Remember the focus is on the quality and detail of the comments. 1. Explain how fixed costs per unit and variable costs per unit respond to changes in volume? Be detailed in your answer. 2. What are mixed costs? How do the per-unit fixed costs respond to changes in volume? 3. Assume P's Bakery Shop has fixed costs per month of $3,000 and variable costs are 60% of sales. What amount of monthly sales allows the shop to break-even (round to nearest dollar)?

Answer 1

Colt which remains same at Break even sales - all lever of production. Therefore with the increase in Cast remains same, however fixed Fixed cost Fixed cork are those Volume total fixed Colt per eurit decreue Variable cat Variable car are those Cast which varies with the level of production. However variable cost per unit Enlaj щСмме at every lice of production Total variable Cast Changes with the change in volune. Variable cost per unit reman same at every level of production Mixed Cost are those cast which contains both food cest components and Variable cest component. Mixed lot are also known as semi-variable cost. Variable part of mixed cost per whit remain same however fixed car part of mixed Cost changes with the changes in volume. Contribution marginal 100 Variable costat 100 -6040-1. fixed out contribution margin =) 3 000 404 $. 7500 CScanned with CamScanner