Variable Cost | Examples & Meaning - InvestingAnswers
2021年5月31日 · To bake cakes, the variable cost of Pierre’s Bakery might look like this: The variable cost to make all of the cakes is $72. If Pierre’s recipe makes 6 dozen cakes (72 cakes), the variable cost per unit would be $1. Variable cost/total quantity of output = x variable cost per unit of output Variable cost per unit = = $72/72 = $1.
Fixed Costs | Example & Definition - InvestingAnswers
2021年1月10日 · Total Cost vs. Fixed Cost vs. Variable Cost. Total cost is both the fixed cost and variable costs combined. Fixed costs typically remain stagnant until schedules or contracts change. Variable costs will change based on sales and production. This means that total costs will also change in line with these two numbers.
Semi-Variable Cost Definition & Example - InvestingAnswers
2020年8月28日 · How Does a Semi-Variable Cost Work? Semi-variable costs remain fixed up to a particular production volume. Beyond this volume, semi-variable costs increase in direct proportion to output. Wages, for instance, are semi-variable costs which multiply by 1.5 beyond 40 hours worked in a given week (also called time-and-a-half).
Break-Even Point | Example & Definition - InvestingAnswers
2020年8月27日 · Variable costs: costs that are dependent on the number of units produced (e.g. raw materials, hourly wages) Selling price: the price the product is sold for. Using this data, the break-even point is calculated by dividing fixed costs by the contribution margin (selling price - the variable cost per unit).
Cost Per Unit Definition & Example | InvestingAnswers
2019年10月1日 · Company XYZ's cost per unit is: $10,000 / 5,000 = $2 per unit. Often, calculating the cost per unit isn't so simple, especially in manufacturing situations. Usually, costs per unit involve variable costs (costs that vary with the number of units made) and fixed costs (costs that don't vary with the number of units made).
Economies of Scale Definition & Example - InvestingAnswers
2020年8月28日 · Variable costs would increase to $1,500,000 (3 million widgets x $0.50 each = $1,500,000). But again, fixed costs would be unchanged at $500,000. Therefore, the total cost to make 3 million widgets would rise to $2,000,000, but the per-unit cost would drop to just $0.66. As production ramps up, total costs will also rise.
Long-Run Average Total Cost (LRATC) - InvestingAnswers
2020年8月21日 · Once a company can establish itself, expand its customer base and increase demand, the output required to meet that demand lowers overall cost in the long run. The calculation can be envisioned as a curve that combines a series of shorter-term curves, showing the lowest costs that a company will be able to reach for any phase of production over ...
Break-Even Price Definition & Example - InvestingAnswers
2020年9月29日 · Based on the total variable expenses per pizza, we now know that XYZ Restaurant must price its pizzas at $5.56 or higher just to cover those costs. But if the price of a pizza is $10, then the contribution margin , or the revenue minus the variable cost for XYZ Restaurant is ($10 - $5.56 = $4.44).
Unit Cost Definition & Example - InvestingAnswers
2019年10月1日 · Company XYZ's unit cost is: $10,000 / 5,000 = $2 per unit. Often, calculating unit cost isn't so simple, especially in manufacturing situations. Usually, unit costs involve variable costs (costs that vary with the number of units made) and fixed costs (costs that don't vary with the number of units made).
Gross Profit | Definition & Examples - InvestingAnswers
2021年5月17日 · 2. Find the Cost of Goods Sold (COGS) When calculating COGS, only variable costs (ie. expenses that change depending on the quantity of product being produced) are included. For example, in a car factory, variable costs may include: Raw materials such as steel, plastic, and glass; Electricity bills and utilities for the factory; Assembly line ...