# At level 3 cost and revenue watch

1. Hello,

Please see the images attached. Attachment 462209462211

1. How was the sales revenue calculated
2. The fixed cost was worked out as £2500 but in the table is it £3500, why?
3. What's the difference between fixed element and fixed cost.
4. How was the profit per batch calculated?

Note: fixed cost and variable cost were correctly calculated using the high low method.

Jabed
Attached Images

2. Probably already solved this but just to help anyone else.

1) The sales revenue for the next two questions worked out by the following £25,000 / 1000 units to get the price they're selling the units at (£25). They then did £25 x 1,500units for the second column and £25 x 2,000 units for the final one.
2) You seem to be getting a bit confused there are four different types of costs, Variable, Fixed, Semi-Variable and Stepped. The semi- variable's fixed portion is £2,500 however the £3,500 is a completely different cost which is a fixed one, they're not related at all.
3)A fixed cost is a different type of costing so in this question the fixed cost is £3,500 an example of this would be paying for your rent on a property is a fixed cost as it remains the same no matter how many units you produce. A fixed element is a part of your semi-variable which is made up of a variable portion and fixed portion.
4)The profit per batch was calculated by taking your profit which was £6,000 and dividing it by the number of units produced which were 1,000 (6000/1000=6). The profit was calculated in the beginning by taking your sales revenue and taking away your total cost.

Kinda late but oh wells.

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