Can someone explain to me how to figure out the variable and fixed cost of the following so I can answer the rest of the question: The following information summarizes the company's cost structure: variable cost per unit $1.30, fixed cost per unit 4.50, total cost per unit $5.80, units produced and sold 48,000, I have to prepare a schedule showing predictions for the total variable cost and total fixed cost for the 40,000 unit level of activity

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Originally Posted by grlygrl

Can someone explain to me how to figure out the variable and fixed cost of the following so I can answer the rest of the question

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Originally Posted by grlygrl

variable cost per unit $1.30

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Originally Posted by grlygrl

fixed cost per unit 4.50

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VC = $1.30
FC = $4.50



You know the total cost per unit.

FC are constant no matter how many units are produced.

VC are variable.

FC = rate x 48,000
VC = rate x 40,000