managerial accounting chapter5 exercise5 27

cost = Fixed cost + (Variable cost per unit × Units) $5,000 = Fixed cost + ($2 × 1,000) $5,000 = Fixed cost + $2,000 Fixed cost = $5,000 - $2,000 = $3,000 Formulate the Cost Equation: Total Cost = Fixed Cost + Variable Cost per Unit × Units Total Cost = $3,000 + $2 × Units Applying the Cost Equa