Management believes it can sell a new product for $8.50. The fixed costs of production are estimated to be $6,000, and the variable costs are $3.20 a unit. Complete the following table at the given levels of output and the relationships between quantity and fixed costs, quantity and variable costs, and quantity and total costs. Quantity Total Revenue Variable Costs Fixed Costs Total Costs Profits (Loss) 0 500 1,000 1,500 2,000 2,500 3,000
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
(Please dont answer in excel, i do not understand it yet. please answer in an equation or worded answer please, thank you.)
Management believes it can sell a new product for $8.50. The fixed costs of production are estimated to be $6,000, and the variable costs are $3.20 a unit.
- Complete the following table at the given levels of output and the relationships between quantity and fixed costs, quantity and variable costs, and quantity and total costs.
|
Quantity |
Total Revenue |
Variable Costs |
Fixed Costs |
Total Costs |
|
|
0 |
|
|
|
|
|
|
500 |
|
|
|
|
|
|
1,000 |
|
|
|
|
|
|
1,500 |
|
|
|
|
|
|
2,000 |
|
|
|
|
|
|
2,500 |
|
|
|
|
|
|
3,000 |
|
|
|
|
|
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