Semi-variable costs

domdom Just JoinedPosts: 1Registered
I have re-taken unit 6 simulation and got stock on how to work out the fixed and variable elements of the cost.

Does anyone know how to work this out or know where to look for help. Any help appreciated.

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  • ccreavenccreaven Well-Known Posts: 119Registered
    dom wrote: »
    I have re-taken unit 6 simulation and got stock on how to work out the fixed and variable elements of the cost.

    Does anyone know how to work this out or know where to look for help. Any help appreciated.

    hi you take the highest amount of units and minus the lowest amount of units

    then take the highest cost and minus the lowest cost

    then you take the difference in cost and divide it by the difference in units and that will give you your variable cost per unit.

    From that you times it by the units (then take this figure away from the total costs you have for the no of units and the rest is the fixed cost)
    I hope this helps??
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