stepped cost

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February 1, 2020 at 10:45 am #560357
pallavyjn
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ACTIVITY LEVEL TOTAL COST

800 units $16400
1200 units $23600

the fixed cost of the business step up by 40% at 900 units.
(i) what is the variable cost per unit ? ans 8 (the book says by trial)
(ii) what is the fixed cost at 1100 units ?
February 1, 2020 at 4:33 pm #560379
John Moffat
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Please do not waste peoples time by asking the same question in two different forums!!

I have answered your other post of this question. If the book really says ‘by trial’ then it is nonsense – I wonder what on earth the book is 🙂
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