What is the definition of variable cost per unit?Variable costs are costs which are directly related to the changes in the quantity of output; therefore,variable costsincrease when production grows, and decline when production contracts. Common examples of variable costs in a firm areraw materials...
l y = total costs l a = the fixed cost for the given period l b = the variable cost per unit l x = the number of units of activity 2. High-low method Step 1 – select the highest and lowest activity levels, and their associated costs Step 2 – find the variable cost per unit ...
B. Variable costs per unit are fixed over the relevant range and fixed costs per unit are variable. C. Total variable costs are variable over the relevant range and fixed in the long term, while fixed costs never change. D. Variable costs per unit change in varying increments, while fixed...
Break-even sales volume is the number of units a firm must sell to exactly cover total operating costs. Suppose a firm sells widgets for $40. The variable cost per unit equals $15. Fixed costs are equal to $700,000 for a year. Subtract the variable cost per unit of $15 from the $...
Potential investors are often very concerned with variable cost per unit when looking at the profit margins of a particular business. Unlike standard business models, the true fiscal growth of manufacturing companies can be skewed by variable costs. Simply put, an increase in profit for these organ...
CVP analysis assumes that costs can be accurately divided into fixed costs and variable costs. cvp分析假设成本可以准确地分为固定成本和变动成本. 互联网 Division Y has determined that the fitting would require variable costs of $ 8 per unit. y部门已计算出每单位配件的变动成本为8美元. 互联网 The...
A. 1 B. 500 C. 1 D. 600 E. 1 F. 800 2000 相关知识点: 试题来源: 解析 A Selling price per unit (36/0.75) = 48 Contribution per unit 48 – 36 = 42 Fixed costs 18,000 Therefore, breakeven point (units) is 18,000/12 = 1,500反馈 收藏 ...
Calculating variable costs can be done by multiplying the quantity of output by the variable cost per unit of output. Suppose ABC Company produces ceramic mugs for a cost of $2 per mug. If the company produces 500 units, its variable cost will be $1,000. ...
Total variable cost = variable costs per unit X number of units made For example, an automotive parts manufacturer determines that each vehicle headlight incurs a production cost of $30. Should the firm produce 150,000 additional vehicle headlights, the variable expense would be 150,000 X $30,...
Total cost ($) What is the cost behaviour of each type of cost? 选项: 2.【单选题】 The following relations of output and cost have been made: It is known that at output levels above 10,000 units, variable cost per unit drops by $0.8 per unit for all subsequent units produced. ...