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General Accounting Discussions: Indentifying Variable Costs

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    • CommentAuthornickcn
    • CommentTimeOct 18th 2009
     
    I am having difficulty in formulating my calculations using variables costs as attempt to calculate Unit Cost.

    I understand that UNIT COST = (FIXED COST + VARIABLE COST)/ OUTPUT

    But I'm having dificulty including those % costs in my calculation:

    Variable Cost:
    1.Material $36,
    2.Packing $15,
    3.Delivery $5,
    4.Marketing 5% Of Sales,
    5.Promotion 2% Of Sales,
    6.Taxation 30% Of Profit?

    If Units Sold Is 250000, Unit Price Is $120, And Fixed Costs Is $2,000,000 What Is The Unit Cost?

    Any advice and guidance would be appreciated.
    Thank you.
    • CommentAuthorjamesparker
    • CommentTimeDec 17th 2009 edited
     
    You can use some other useful methods and i will guide you !

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