Live Course on Drafting of Appeal and Reply of Penalty Notice by CA Sachin Sinha. Register Now!!

Semi variable costs

shreya singal (student) (297 Points)

02 December 2017

Are semi variable costs considered while calculating contribution?

Reply
Follow
Share

3 Replies

Divakar (Student CA Final ) (11857 Points)
Replied 02 December 2017

If u consider then how u calculate contribution... Then contribution per unit upto particular unit is same.. Then change after... Suppose for upto 100 unit there is vc is Rs. 100000 and for next 100 unit vc Rs. 200000...then contribution per unut uoto 100 unit is different and contribution for another 100 unit is different

shreya singal (student) (297 Points)
Replied 02 December 2017

Oh... Thanks.... And when we have SFC we calculate breakeven for range wise.... But we dont do it in SVC... why?

Divakar (Student CA Final ) (11857 Points)
Replied 02 December 2017

SFC and SVC are not same?? Breakeven point is calculated for fixed cost that refer that how much quantity to sold for recovery of that fixed cost... After that BEP u r in profit