Practise distinguishing fixed, variable and semi-variable costs using IB Business Management SL 3.3.1 questions and mark schemes.
Fishers manufactures baseball caps.
70 % of Fishers’s annual sales occur from April to September. Starting in March, Fishers experiences a significant increase in current assets and current liabilities, which start to decrease in October.
Fishers
Fishers manufactures baseball caps. In 2017, it sold 75000 caps. The variable cost per cap was $ 6. 70 % of Fishers's annual sales occur from April to September. Starting in March, Fishers experiences a significant increase in current assets and current liabilities, which start to decrease in October.
Table 1: Selected data for Fishers for 2017 (figures in \$000s)
Table 2: Selected forecasted financial information for Fishers for 2018
Sales price per cap will remain the same as in 2017.
Using Table 2, calculate the following forecasted figures for 2018:
total variable costs;