2. Advanced Formula Total Cost = Total Fixed Costs + (Average Variable Cost x Total Units) Here, Average Variable Cost:It is the cost to produce one unit of a specific product. Total Units:It is the total number of units the company makes of a particular product. ...
In the long run, total fixed cost a. falls. b. rises. c. is constant. d. does not exist. Total Fixed Cost: In the production process, the total fixed cost is the cost that a firm incurs to initiate its business in the market. This cost does not va...
Calculate the total cost and total retail cost for 25 leather attache cases, costing $79.50 each, and retailing for $168.99 each. Compute the unit cost under absorption costing. In applying the high-low method of cost estimation to mixed costs, how is the total fixed cost estimated? Compute ...
However, while the total fixed cost remains the same, fixed cost per unit changes. For example, if your fixed cost is INR 10,000 and the output produced in the 1st quarter is 5000 units, for the 2nd quarter it is 3000 units and for the 3rd quarter it is 4000 units, then the fixed...
Totalvariable costs÷ Total units produced Break-Even Point (BEP) Formula Break-Even Point Examples Let’s show a couple of examples of how to calculate the break-even point. Sam’s Sodas is a soft drink manufacturer in the Seattle area. He is considering introducing a new soft drink, call...
(Communications in Writing);④合同的优先次序(Priority of Contract Documents); ⑤波纹理论的合同描述(Unforeseeable Physical or Legal Obstructions); ⑥ 变更令(Variation Instruction/Variation Order);⑦调价公式(Price Fluctuation Formula/Adjustments for Changes in Cost);⑧索赔(Claim);⑨不可抗力(Force ...
Scott Company uses the following flexible budget formula for annual maintenance costs: Total cost = $6,000 + $0.70 per machine hour The current month’s budget is based on planned machine time of 30,000 hours. Monthly maintenance cost included in this flexible budget isA. $20,500 B. $...
This is the cost of getting all that inventory ordered - fixed costs incurred when you make an order. For example: inspections, vendor payments, and landed costs. Order costs are those costs that don’t change much depending on quantity; rather, they change depending on overall orders made....
the best option for many businesses is expansion.Economies of scalerefer to the idea that larger companies tend to be more profitable. A large business's increased level of production means that the cost of each item is reduced in several ways. For example, raw materials purchased in bulk are...
Think about this data as numbers and values found in spreadsheets—after all, you would trust an Excel formula. Qualitative data is considered unstructured. This type of data is formatted (and known for) being subjective, individualized, and personalized. Anything goes. Because of this, ...