you sell each bracelet for $200, with variable costs at $100 per unit. when you deduct the $100 costs from the selling price of each unit, what remains is the per-unit contribution to _______ costs.

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08-12-2022
Business

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you sell each bracelet for $200, with variable costs at $100 per unit. when you deduct the $100 costs from the selling price of each unit, what remains is the per-unit contribution to _______ costs.

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kjuli1766 kjuli1766 · Answer 1 · 2022-12-14T14:23:07+01:00

You sell each bracelet for $200, with variable costs at $100 per unit. when you deduct the $100 cost from the selling price of each unit, what remains is the per-unit contribution to fixed costs.

A company's cost burden is variable and changes as production and distribution change. Unlike fixed costs, they are not fixed costs. As production increases, variable costs increase due to the need to purchase raw materials in large quantities. Variable costs fluctuate according to production volume.

Variable costs may include labor costs fees and raw materials. Fixed costs remain the same regardless of production output. Fixed costs may include lease and rental payments, insurance, and interest payments. Piece rate labor is one of these forms. Workers are paid based on every unit they make. Employees that are paid based on billable hours are another variable cost.

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