Total variable cost

Question

when total Fixed $ 50,000.00

Total cost $ 120,000.00

Unit Fixed Cost $5

Answer 1

Subtract total fixed cost from total cost=$70,000.00 to give total variable cost. Unit fixed cost is $5. Number of units must be 50000/5=10,000. (70000/10000=$7 is unit variable cost, so total unit cost is $12.00, making the total cost $120,000 as quoted.)