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smithgirlmoe
Mar 23, 2008, 06:16 PM
I have an accounting problem where we have to calculate fixed and variable costs. I'm having trouble locating in the text book how to calculate these. Any help would be greatly appreciated.
The problem states that Company expects to maintin the same invenories at the end of the year as the beginning.
I need to calcualte the estimated fixed cost of Direct materials when it shows that the estimated variable cost is $8.90 per unit sold and
the estimated fixed cost for direct labor when the estimated variable cost is $3.80 per unit sold
The estimated variable cost per unit sold of advertising expense when the estimated fixed cost is 13,200
The estimated variable cost per unit sold of travel when the estimate fixed cost is 2,700
and the estimated variable cost per unit sold of office salaries when the fixed cost is 81,500
I don't want the answers. I just need help figuring out how to calculate this. I am so very confused and no matter what way I look at this I just can't make it make sense.

Thank You!