# ACG.docx - Variable Cost Fixed Cost Per Unit Total*Variable...

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Variable Cost Fixed Cost Per Unit Total *Variable Cost: w/ production or without production price levels lower or rised *Fixed Cost: w/ or without production it is a flat rate, it will remain the same for payment. If it is converted for per unit cost will drop (for instance 2 people paying for rent or 3 people paying for rent) Mixed Cost – variable cost + fixed cost are all mixed in together. Total Cost = Fixed Cost + Variable Cost High-Low Method – Example Units \$TOH June 1000 45,550 July 1500 52,000 August 2100 61,500 September 1800 57,500 October 750 41,250 Units \$ Highest 2100 61,500 Lowest 750 41,250 Difference of Cost (\$) 20,250 Difference of units 1350 20250/1350 = \$15 per unit (variable cost) Total Cost = Fixed + Variable 61,500 = FC + (2100) (15) 61,500 – 31,500 = 30,000 Which indicated that the fixed cost is 30,000 GROSS PROFIT RATIO: Sales - COGS Sales
Break Even Units = Fixed Cost / Contribution Margins (must divide) 1) Calculate Contribution Margin Unit:
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