Module+3000+XVI+Formulas

Module **XVI Formulas**

**Y = a + b(x)** **Y = total costs** **a = total fixed costs** **b = variable cost per unit** **x = total units or volume**
 * 1) **Basic cost equation is:**

**total variable cost =** **y = b(x)**
 * **from this formula you can also develop equations for other costs such as:**

**y = a**
 * **total fixed cost =**

**y = b/x**
 * **variable unit cost**

**y = a/x**
 * **fixed unit cost =**

**Y = a + b(x)**
 * **Mixed Costs**


 * **Mixed costs per unit**
 * Total mixed costs / total units**