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output total cost
(units) ($)
200 7000
300 8000
400 8600
For output volume above 350 units the variable cost per unit falls by 10% (this applies to all units)can you please solve this for me???
It would help if you said what the question was asking for 🙂
First use 200 and 300 units, because for these the variable cost per unit will be the same.
This gives a variable cost of $1,000/100 = $10 per unit, and a fixed cost of $5,000.
For output of 350 units or more, then the variable cost will fall by 10% to $9 per unit and the fixed cost will stay at $5,000.
Why are you attempting questions for which you do not have an answer? You should be using a Revision Kit from one of the ACCA approved publishers – they have answers and workings.
It would help if you said what the question was asking for 🙂
First use 200 and 300 units, because for these the variable cost per unit will be the same.
This gives a variable cost of $1,000/100 = $10 per unit, and a fixed cost of $5,000.
For output of 350 units or more, then the variable cost will fall by 10% to $9 per unit and the fixed cost will stay at $5,000.
Why are you attempting questions for which you do not have an answer? You should be using a Revision Kit from one of the ACCA approved publishers – they have answers and workings.
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