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    grlygrl's Avatar
    grlygrl Posts: 1, Reputation: 1
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    #1

    Apr 1, 2007, 04:54 PM
    Managerial Accounting
    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
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #2

    Apr 1, 2007, 05:23 PM
    Quote 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
    Quote Originally Posted by grlygrl
    variable cost per unit $1.30
    Quote Originally Posted by grlygrl
    fixed cost per unit 4.50
    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
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