Calculate the fixed cost,variable cost & changes in scenario

5. Calculate the unknowns for the following independent situations. All given activity levels are within the relevant range.

A) Total fixed costs for Company A are $250,000. Total costs, both fixed and variable, are $378,000 for Company A when 40,000 units are produced.

Calculate:
1) variable cost per unit
2) fixed cost per unit

B) Total fixed costs for Company Z are $200,000. Total costs, both fixed and variable, are $450,000 if 125,000 units are produced.

Calculate:
1) variable cost per unit
2) fixed cost per unit if 125,000 units are produced
3) total variable costs if production decreases to 100,000 units

C) Total variable costs are $300,000 if 50,000 units are produced. Total fixed costs are $150,000 if 35,000 units are produced.

Calculate:
1) unit variable cost
2) fixed cost per unit if 35,000 units are produced
3) total variable costs if 35,000 units are produced

Solution Preview

A. Variable Cost = Total cost - Fixed cost = 378000 - 250000 = 128000

Variable cost per unit = 128000/40000 = $3.20
Fixed cost per unit = ...

Solution Summary

The solution calculates the fixed costs, variable costs and changes in scenarios.

... Operating Leverage - The formula for calculating operating leverage ... Required: Calculate the company's breakeven point in ... low cost formula you calculated in 1 ...

... price $20 per unit Variable Cost $10 per unit Fixed costs $5,000 Sales ... 1. Calculate the Earnings before Interest and Taxes (EBIT) for Cheryl's Posters ...

...Calculate the project's expected NPV, standard deviation, and ... A Company sells watches for $25; the fixed costs are $140,000; and variable costs are $15 ...

... The depreciation of the tax shield is calculated. ... the missing numbers and then calculate the OFC ... unit sales unit price unit variable cost fixed costs Base case ...

... the demand elasticity that you calculated is elastic ... b. Calculate the average total cost, average variable... third problem identifies and calculates various fixed...

...costs increase $31,500 with no other cost or revenue factors changing, calculate the break ... The operation of the cafeteria requires fixed costs of $4,700 ...

... 2 Case 3 Case 4 Calculate the number o ... 3.20 Sales $ 2,500,000 CVP exer Variable costs $ 1,500,000 per ... 40.0% CM percent Required Fixed costs $ 900,000 Consider ...

... WACC is calculated by multiplying the cost of ... on the information provided, calculate the firm's ...Variable costs (40%) $1,200,000 Fixed costs 800,000 Earnings ...