Semi-variable and fixed cost elements
alexnwa
Registered Posts: 21
Please, could someone solve this below:
Energy cost is semi-variable, with a fixed elements of £37,000
An increase in only variable cost of energy of 2%
Energy £115,000 (first scenario)
what is value of the alternative scenario?
Note: the sale volume 130,000 (first scenario) and 140,400 (alternative scenario)
Energy cost is semi-variable, with a fixed elements of £37,000
An increase in only variable cost of energy of 2%
Energy £115,000 (first scenario)
what is value of the alternative scenario?
Note: the sale volume 130,000 (first scenario) and 140,400 (alternative scenario)
0
Comments
-
Hi
So I think you would have £115,000 minus £37,000 giving you £78,000 variable cost for 130,000 units.
£78,000 divided by the amount of units 130,000 =0.6
This means the variable cost is 0.6 per unit
0.6 x 140400 units in new scenario =£84,240 variable cost of alternative scenario, then add the fixed cost of £37000 =
£121,2400 -
Thank you for your explanation.0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 18.9K For AAT students
- 259 NEW! Qualifications 2022
- 146 General Qualifications 2022 discussion
- 9 AAT Level 2 Certificate in Accounting
- 37 AAT Level 3 Diploma in Accounting
- 64 AAT Level 4 Diploma in Professional Accounting
- 8.9K For accounting professionals
- 23 coronavirus (Covid-19)
- 274 VAT
- 92 Software
- 274 Tax
- 137 Bookkeeping
- 7.3K General accounting discussion
- 193 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 352 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 590 Job postings
- 17 Who can benefit from AAT?
- 36 Where can AAT take me?
- 44 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 65 AAT membership