The question in my book given the sales = 75 000, variable cost = 45 000, fixed cost = 25 000, profit = 5 000. Then the sales increased 40 000. The answer for variable cost is 80 000. How to get the answer? I don't have any accounting background so sorry if this is too easy...
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by cloud5</i>
<br />The question in my book given the sales = 75 000, variable cost = 45 000, fixed cost = 25 000, profit = 5 000. Then the sales increased 40 000. The answer for variable cost is 80 000. How to get the answer? I don't have any accounting background so sorry if this is too easy...
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May be it is a printing mistake. According to my calculation answer for variable cost should be 69,000.
Waiting for some other people replies.