Total fixed costs for Taylor Incorporated are $260,000. Total costs, including both fixed and variable, are $500,000 if 156

Question

hichkok12 [17]

3 years ago

13

Total fixed costs for Taylor Incorporated are $260,000. Total costs, including both fixed and variable, are $500,000 if 156

,000 units are produced. The variable cost per unit is

Business

1 answer:

kobusy [5.1K] · Answer 1 · 2022-03-31T16:53:39+03:00

Answer:

The variable cost per unit is $1.54

Explanation:

Variable costs are those cost which vary with the change in production of units means higher the production higher cost and lower production will result in lower cost e.g Material cost, labor cost etc.

On the other hand fixed cost the cost which does not vary with the production of units. It is fixed no matter what is the level of production.

According to given data:

Total Cost = $500,000

Fixed Cost = $260,000

Variable cost = Total cost - fixed cost

Variable cost = $500,000 $260,000

Variable cost = $240,000

Number of units = 156,000

Variable cost per unit = $240,000 / 156,000 = $1.54 per unit

Total fixed costs for Taylor Incorporated are​ $260,000. Total​ costs, including both fixed and​ variable, are​ $500,000 if​ 156

Total fixed costs for Taylor Incorporated are $260,000. Total costs, including both fixed and variable, are $500,000 if 156