Fixed COST HELP!

This topic has 2 replies, 3 voices, and was last updated 8 years ago by namah1.

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December 11, 2017 at 5:14 am #422470
hamzanaziiir
Member
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Break even point =30000
Variable cost = 15/unit
Contribution/sale=30%
Fixed cost= ?
December 11, 2017 at 2:41 pm #422544
Ken Garrett
Keymaster
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S – Vc = C
C/S = 0.30, so C = 0.30S

Threrefore

S – Vc = 0.30S

0.7S = Vc = 15

S = 15/0.7 = 21.42857

C = 21.42857 – 15 = 6.42857

At break even, total C = FC, so FC = 6.42857 x 30,000 = 192,857
February 15, 2018 at 9:34 pm #437501
namah1
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Hi there, did you managed to pass your ma2 exam yet,please? Do you mind if I ask what was the main topics and if you have any advice what area should I focus on most? Many thanks
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