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Question 3: Computations for fixed and variable costs At current sales volume of 100 units, fixed costs (FC) are $5 per unit and variable costs
Question 3: Computations for fixed and variable costs At current sales volume of 100 units, fixed costs (FC) are \$5 per unit and variable costs (VC) are \$6 per unit. a) Compute total fixed costs at current sales volume. total FC= b) Suppose that sales volume increases to 125 units. At this new volume, total FC= FC per unit = VC per unit = total VC = c) Write down the total cost equation: TC =+ volume (e.g., if TC =500+2 volume, enter 500 in the first box and 2 in the second box) Predict total costs at sales volume of 80 units: Predict total costs at sales volume of 120 units
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