Purchase Solution

Calculating fixed and variable cost

Not what you're looking for?

Ask Custom Question

In a slow year, Deutsche Burgers will produce 2.0 million hamburgers at a total cost of $4.4 million. In a good year, it can produce 4.4 million hamburgers at a total cost of $5.0 million. What are the variable and fixed costs of hamburger production? (Enter your answers in dollars not in millions. Round "Variable cost" to 2 decimal places.)

Variable cost $ _.25__per burger
Fixed cost $ ___ what is the fixed cost

Purchase this Solution

Solution Summary

The help provides details avout how to derive variable and fixed cost from cost and volume data.

Solution Preview

Total cost = Variable cost * Quantity produced + fixed cost

We have two scenarios:
Scenario 1: Quantity produced = 2.0 million and total cost = $4.4 million
Total cost (1) = Variable cost * Quantity produced (1) + fixed cost
-> 4.4 = Variable cost * 2.0 ...

Purchase this Solution


Free BrainMass Quizzes
SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

Introduction to Finance

This quiz test introductory finance topics.