Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for March and June 2025 exams.
Get your discount code >>

Variable cost

Forums › FIA Forums › MA2 Managing Costs and Finance Forums › Variable cost

Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts
  • March 9, 2018 at 1:45 pm #441763
    veronikamikh
    Member
    • Topics: 7
    • Replies: 3
    • ☆

    I cannot get a correct answer, please could you help me:

    Budgeted sales of company’s single product in a period are 20,000 units producing a total contribution of $180,000 at a selling price of $24 p.unit. Fixed cost are $6 per unit based on the budgeted sales quantity.
    What is the budgeted variable cost per unit?

    Thank you in advance

    March 9, 2018 at 6:47 pm #441876
    secondstar
    Member
    • Topics: 16
    • Replies: 220
    • ☆☆☆

    Budgeted Sales = 20,000 units
    Contribution from these units = $180,000
    Contribution/unit = $180,000/20,000 = $9

    V.C/unit = Selling Price – Contribution/unit = $24-$9 = $15

    March 10, 2018 at 12:26 pm #442050
    namah1
    Participant
    • Topics: 7
    • Replies: 71
    • ☆☆

    Contribution= sales- variable costs (marginal cost)
    180000= 480000 (24×20000)- variable cost
    480000-180000=300000/20000=15/unit

  • Author
    Posts
Viewing 3 posts - 1 through 3 (of 3 total)
  • You must be logged in to reply to this topic.