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Fixed, Variable and Semi Variable

Hello. I am now on the elements of costing unit for AAT Level 2 and stuck on how to work out the below to determine whether the cost is fixed, variable or semi variable...


At 5,000 units, this cost is £12,500 and at 3,750 units, it is £9,375

At 4,000 units, this cost is £4.00 per unit and at 2,500 units, it is £6.40 per unit

At 8,000 units, this cost is £31,500 and at 10,000 units, this cost is £37,500


Any help on the above would be much appreciated...

Thanks

Comments

  • AlisonSwansonAlisonSwanson Registered, Tutor Posts: 209
    If total cost divided by the number of units is the same for both levels of output then cost is variable.

    If the number of units multiplied by cost per unit is the same for both levels of output then costs are fixed.

    If neither of the above is true then costs are semi-variable.
  • taralouisetaralouise Registered Posts: 16
    Hi sorry for the late reply, this really helped thank you.
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