Can someone give me some help on a problem?
Sales (2000 items) $900,000
COGS 400,000
Salary 70,000
Operat. costs 157,000
Advert.& Promo year 15,000
Commissions (4%sales) 36,000
What is the variable cost per unit sold? I got $218
Total fixed costs? I got $227,000
Estimated total costs if sold 3000 items in next year? ?
Is COGS the cost of Getting Started? (just a guess).
To get variable cost of �218 per unit based on 2000 sales you'd need variable costs of �436,000. That assumes Salary is fixed but I'm not sure it is. It depends on the definition of variable. Aren't operating costs variable too?.