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Fixed COST HELP!

Forums › FIA Forums › MA2 Managing Costs and Finance Forums › Fixed COST HELP!

  • This topic has 2 replies, 3 voices, and was last updated 7 years ago by namah1.
Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts
  • December 11, 2017 at 5:14 am #422470
    hamzanaziiir
    Member
    • Topics: 1
    • Replies: 0
    • ☆

    Break even point =30000
    Variable cost = 15/unit
    Contribution/sale=30%
    Fixed cost= ?

    December 11, 2017 at 2:41 pm #422544
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10594
    • ☆☆☆☆☆

    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
    Participant
    • Topics: 7
    • Replies: 72
    • ☆☆

    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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