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Variable Costs and Fixed Costs

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If the formula for calculating net income (profit) using fixed costs (fc), variable cost (Vc), price (P), and units sold (u) is NI=U(P-Vc)-Fc, then if the profits of a company are $100 when sales are $1000 (100 units at $10 each) and $80 when sales are $800 (80 units at $10 each), what formula is used to determine fixed cost and variable costs?

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The expert examines variable costs and fixed costs.

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If the formula for calculating net income (profit) using fixed costs (fc), variable cost (Vc), price (P), and units sold (u) is NI=U(P-Vc)-Fc, then ...

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  • BE, Bangalore University, India
  • MS, University of Wisconsin-Madison
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