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Hi john sir..
john sir semi variable cost changes in total amount as well as in per unit..my question is..semi variable cost changes inversely or direclty?Thnx for your kind reply..semi variable also changes in total amount..what about total? Directly or inversly?
hmmm..i also think so..bt i read a statement in a book. which was as follow..
Semi variable cost changes bt not perfectly in direct proportion to the output..
True. However, why don’t you watch the lectures which explain everything you need for the exam!
Hmm..thnks..john sir m from a village of that country where there are techonolgical barriers still in 21th century..that y i again and again distrb u
I am sorry that you are not able to watch the lectures (although you must understand that we cannot type out all of the lectures).
No no john sir..m sorry that i distrb u again nd again and u ans me with love nd patience…u r my ideal teachr..nd i feel pride that u give me the answrs of those question which my colleg teachrs can not..i learned much more from u..that y i love u nd feels that u r my ideal ..i read ur lectre notes…and also try to watch lectres where there is proper intrnet available..nd i knw that u can not type whole lectres..bt again sir..thnx alot from the core of my heart even if u r not able to ans me ..thnx
John sir help me with the following…
Activity level 800. 1200
Total cost. 16400. 23600The fixed cost of business step up by 40 percent when at 900 units..
Find varible cost per unit….
John sir i knw how to use high low method when there is step in fixed cost…bt in this specific question only i m unable to find..
Surely the book in which you found the question also has an answer (with explanations)??
The only way really to deal with this one is to solve equations.
If the variable cost is V and the fixed cost (before the set up) is F.
Then 800V + F = 16,400
Also, 1,200 + 1.4F = 23,600If you multiple everything in the first equation by 1.4, then you can subtract one equation from the other and you should be able to sort it out.
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