Fixed/variable/semi variable

LA2018 Registered Posts: 19
Completely stuck on how to figure out the attached. I get the fixed costs but how do I know the difference between variable and semi variable? I just don’t know how to work it out like this.


  • dumutroba
    dumutroba Registered Posts: 262
    Variable increase proportioned to the units increase, unit cost is the same, unlike the semi-variable
    2000/6000 =0.3 and 9000/27000 =0.3 this is variable
    Fixed as you have said is obvious, the total cost is the same - £6000
    The middle must be semi, we can check with high low method
    Variable element is £1
    2500-1500=1000 fixed element
    Check, 3500x1=3500+1000=4500
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