Costing practice cba
jojo1979
Registered Posts: 75 Regular contributor ⭐
Hi all
I was wondering if anyone could help. I have been going through the practice CBA for costing and am struggling to find where one of the answer figures have come from. Its task 2.1 ans the fixed element figure. I am ok with getting the variable figure but cannot for the life of me understand where the fixed figure has come from, if anyone can help i would be grateful. AM really really dreading this one :(
I was wondering if anyone could help. I have been going through the practice CBA for costing and am struggling to find where one of the answer figures have come from. Its task 2.1 ans the fixed element figure. I am ok with getting the variable figure but cannot for the life of me understand where the fixed figure has come from, if anyone can help i would be grateful. AM really really dreading this one :(
0
Comments

to find the fixed costs you have to use the HiLow method
information you have been given in the question
.............................................Units......................semi variable costs
.............................................3000......................£7 380
Less
from table ..............................1200.....................£3 780
equals only variable costs ........1800......................£3,600 therefore cost VC per unit =£2
Total costs.............................£7 380 (3000 units)..........£ 3 780 (1200 Units)
less
Variable cost @£2 per unit.......£6,000.............................£2,400
equals
Fixed Cost..............................£1,380.............................£1,3800 
Hiya,
Thank you for explaining that understand it now. Just hope it stays in there for tomorrows exam.
Thank you again.
Jo0
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