COST ACCOUNTING
BREAK EVEN POINT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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£3000
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£5
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£4200
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£7200
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£19
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Detailed explanation-1: -Variable Cost Formula. To calculate variable costs, multiply what it costs to make one unit of your product by the total number of products you’ve created. This formula looks like this: Total Variable Costs = Cost Per Unit x Total Number of Units.
Detailed explanation-2: -In order to find the average variable cost (total variable cost per unit produced), you need to sum all the variable costs for a given period and divide by the total number of units made during that period. In other words, you need to divide the total variable cost by the total number of items made.
Detailed explanation-3: -90000 and variable cost to sales is 75%, contribution is: Rs. 67500 Rs.
Detailed explanation-4: -Total output = Total Spending = Total income.