hollandwinter
Jan 24, 2013, 10:09 AM
X Company has established a budget of $50,000 for the production of 1000 units. Half of this amount is fixed.
At an actual production level of 500 units,
(a) determine the variable cost per unit
(b) determine the fixed cost per unit
(c) determine total fixed cost
(d) determine total variable cost
(e) determine total costs
I have assumed that $25,000 is the fixed amount, while leaving the other 25 grand as the variable amount . Now, that would mean that it's supposed to be $50 for both the variable cost per unit and fixed cost per unit.
I think the answers I have for the last three questions are wrong, so can I get some help, please?
At an actual production level of 500 units,
(a) determine the variable cost per unit
(b) determine the fixed cost per unit
(c) determine total fixed cost
(d) determine total variable cost
(e) determine total costs
I have assumed that $25,000 is the fixed amount, while leaving the other 25 grand as the variable amount . Now, that would mean that it's supposed to be $50 for both the variable cost per unit and fixed cost per unit.
I think the answers I have for the last three questions are wrong, so can I get some help, please?