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1. $214559 64200 units
2. $243183 86170 units
3. $259620 85620 units.
How to find out the vc and fc
In this question they have used the high cost and the low cost. Why sir this? We should use the quantity nah… so please explain.It is the normal high/low rule – it is the rule you always apply to question like this.
Have you watched the lecture? It is the lecture that goes with chapter 4 of the course notes (and repeated again as part of the lecture that goes with chapter 17).
output(unit) total cost($)
26 6566
30 6510
33 6800
44 6985
48 7380
50 7310when output is 80 unit or more, another factory unit must be rented and fixed therefore increase by 100%
variable cost per unit is forecast to rise by 10%in 2014.
calculate the estimated total costs of producing 100 units in 2014.
sir i am able to calculated
VC per unit: $31 per unit
fixed cost: $5760then i am unable to calculate Estimated total cost of producing 100% units in 2004.
Please help me sir.
The variable cost will be 10% higher (so 31 + (10% x 31))
The fixed cost will be 100% higher (so 5760 + (100% x 5760))
Then there should be no problem 🙂
In that case either you have mistyped the question, or BPP have made a mistake. ( I did assumed that when you said ‘estimate cost of producing 100% units’ that you actually means 100 units 🙂 )
The correct answer is as per my last reply, and comes to: $14930
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wow… that kind of question was givn me a prblm in the exam .. i apreciate the help…
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