Companies use an overhead variance formula because they are required to assign a portion of the fixed overhead costs to each product. Businesses use several methods to do this. A variation in ...

The formula to determine the break-even point is: Number of units to break even = fixed costs / (price per unit – variable cost per unit) ...

Calculate the Total Cost Using the High-Low Cost Formula: Finally, use the calculated variable and fixed costs to determine the total cost at a specific activity level: ...

The Disadvantages of Allocating Fixed Costs. All products and services have certain inherent costs associated with them. You can determine the cost of materials per product by dividing the cost of ...

Charles E. Hegji, Fixed Cost, Marginal Cost, and Market Structure, Quarterly Journal of Business and Economics, Vol. 40, No. 1 (Winter, 2001), pp. 17-24 ...

The variable cost ratio is a calculation of the costs of increasing production in comparison to the greater revenues that will result.

Break-even price is the price for which an asset must be sold to cover the costs of acquiring and owning it. Any price higher than the break-even price means profit.