Calculate variable cost per unit

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Question - Calculate the unknowns for the following independent situations. All given activity levels are within the relevant range.

1) Total fixed costs for Company Z are $100,000. Total costs, both fixed and variable, are $350,000 if 125,000 units are produced.

Calculate:

a) Variable cost per unit

b) Fixed cost per unit if 125,000 units are produced

c) Total variable costs if production decreases to 100,000 units

2) Total variable costs are $300,000 if 50,000 units are produced.

Total fixed costs are $200,000 if 35,000 units are produced.

Calculate:

a) Unit variable cost

b) Fixed cost per unit if 35,000 units are produced

c) Total variable costs if 35,000 units are produced.

Reference no: EM132540058

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