Can any1 Help Plz!

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
hi am doing a past papaer Monday 13 June 2005. Task 2.1 forcast.

i am given veriable, Fixed , Total and price per unit for 1,000,000 unit and been asked to work out the variable and price per unit for 1500,000 and 2,000,000.

its easy to work it out for 2,000,000 units as all i have 2 do is double the costs i have given for 1,000,000 units.

But can any1 please exaplin how do i work it out for 1500,000.

:(
exam on monday please help.

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Can any1 Help Plz!

    is this to do with stepped fixed costs, variable and fixed costs?

    I can have a look at the paper when I get home - in about 40 mins if you want?

    You might get another response before then, but I did ECR in December so............
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Can any1 Help Plz!

    hi again Ali_khan

    if you are wanting to calculate variable costs for 1,500 000 units........

    as these are variable costs - they can be directly calculated to each unit of production.

    so for 1,000,000 units

    direct materials are 5,000,000

    £5,000,000/1,000,000units = £5.00 per unit

    Method 1
    you can then either do £5.00 x 1,500,000 = £7,500,000


    Method 2
    or you can take the value for 1,000,000 units materials variable cost / 2 and add to the cost that is detailed for 1000000 units : £2,500,000 + £5,000,000 = £7,500,000


    then just do the same calcs for all of the variable costs.

    it doesn't say that the fixed costs increase over and above a certain level of output, (so they are not stepped) so you can assume that these will stay the same at whatever level of output they have detailed in the question

    hope this helps - good luck with the paper on Monday!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Can any1 Help Plz!

    Thank u very much ruby!

    i have done it and it worked by using the second method u told me.

    one more Question pls.

    just say if i had 2 work it out for 1,300,000units can i still use the same method and work it out.

    thanx
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Can any1 Help Plz!

    No worries Ali_khan

    happy to help. If you are going to calculate variable costs for varying levels of output, I would always use method 1. don't start trying to do a 1/3 of this or an 1/8 of that, you will get stuck this way........

    get down to the individual unit cost in respect to variables - that is your base figure, then just time the unit varaible cost by the level of output.

    any more queries?

    Ruby :D
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Can any1 Help Plz!

    Yeah ur right about the second method ruby. anyway if u really wana help i have lots of other Questions like this 2 ask u if u dnt mind.

    But it would b better if u got msn or Yahoo, so can chat instantly and work on it.

    U get me?

    So if u have Msn or yahoo please let me know.

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Can any1 Help Plz!

    Hi Ali

    have just sent you a private message.

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