Hi, I'm really stuck on an activity in elements of costing coursebook. I can't work out how Im supposed to work out the answers. I was hoping someone on here might be able to explain how I do it? Sorry about the rubbish pic, hope it's clear enough for you to see

The semi variable costs are made up of - Fixed Costs 8,500 + variable costs of 2500 divided by 500 = 5 (times the quantity by 5 and then add on the fixed costs. (First work out the total variable costs 2,500 and then divide this by the number of units to give you cost per unit)

As with above work out the cost per unit and then multiply with units produced Variable costs on line 1 / units = variable costs per unit x units produced = variable costs.

## Answers

271Fixed Costs 8,500 + variable costs of 2500 divided by 500 = 5 (times the quantity by 5 and then add on the fixed costs.

(First work out the total variable costs 2,500 and then divide this by the number of units to give you cost per unit)

As with above work out the cost per unit and then multiply with units produced

Variable costs on line 1 / units = variable costs per unit x units produced = variable costs.

Hope this helps