If the total cost ''y'' is related to the sales volume ''x'', by the equation y = 0.40''x'' + 24,000 Find the variable cost on sales of $50,000, the fixed cost, and the break-even point. Then calcula Explain how...
fixed costs are one of the two components of the total cost of a good or service offered by a business. they are business expenses that do not change as the level of production fluctuates. on the other hand, variable costs are considered volume-related as they change with the output. summ...
Fixed Cost = Total Cost of Production – (Variable Cost Per Unit x Number of Units Produced) These are the definitions of each part of the formula: Total cost of production:The sum of yourproduction costsor the total amount of money required to run your business. Variable cost per unit:Th...
Using the figure above, what is the total cost? $5600 $4000 $4800 $4400 When can a business owner be earning a profit but not covering costs? When Ajax Co. produced 3 units of output per week, its total fxed cost was $120 and total variable cost was $45. When output increased to...
Fixed cost allocationInput-output scaleCommon set of weightsHighlights This paper develops a fixed cost allocation approach based on input–output scales. A general mathematical expression for the input–output scale is defined. Organizational efficienc......
A fixed cost is a business expense that doesn't vary even if the level of production or sales changes. They can be be used when calculating key business metrics.
Definition of Fixed Cost A fixed cost is one that does not change in total within a reasonable range of activity. Since the fixed cost remains constant in total, the fixed cost per unit of activity decreases when the volume increases, and the fixed cost per unit of activity increases when ...
where the total cost, CT ($), is the sum of the fixed cost, Cfix ($), and the product of the production quantity, Q, and the variable cost, Cvar ($/part). The fact that variable costs depend on the volume of production, and fixed costs do not, leads to the idea of a break...
A fixed cost remains the same regardless of a business’s sales volume, production output, or total revenue. Variable costs change in relation to a company’s production output and/or sales volume. Analyzing and managing fixed and variable expenses is essential for budgeting, financial strategizing...
Fixed Cost = Total Cost - (Variable Cost Per Unit x Units Produced) Using the same example as before, if you know that your total cost is $59,500, your variable cost per unit is $0.60 per cookie, and you have made 40,000 cookies this month, then as per the formula, ...