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lotus777
Jan 12, 2009, 09:15 AM
I am trying to calculate the variable cost per unit.

Here SR = Sales Revenue

In this problem I know


SR 25,000 Canadian dollars
Operating profit 10,000 Canadian dollars
Units of service 500 units

I have:

Sales price per unit as 25,000 divided by 500 units

I have:

Total costs as: TC = Total sales revenue - Operating Profit

Then i can't sort out how to do variable costs. I know TC = Total Variable costs + Total fixed costs.

But then my brain shuts down.:-)