Variables

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gareth1985
gareth1985 Registered Posts: 24
in Elements of Costing
Hi there,

in the pic that I have attached I know that the fixed costs still the same, but how can I find out the variable costs and total costs for the next two rows?

Please help.

Thanks,

Gareth

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  • dumutroba
    dumutroba Registered Posts: 262
    edited October 2018
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    Find variable cost per unit from the first row
    £20000/1000 units=£20 variable cost per unit

    1500x20=30000
    2000x20=40000

    Total cost is your fixed cost + variable cost
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  • gareth1985
    gareth1985 Registered Posts: 24
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    Brilliant, thanks a lot for your help again. Have a nice weekend.
  • dumutroba
    dumutroba Registered Posts: 262
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    No problem
    Have a good weekend as well
    AAT Level 2. 2018 Distinction
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    AAT Level 4. 2019 FSLC 100% MABU 93% MADC 82% PDSY 80%
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