02-04-2010, 08:17 PM
The total fixed costs after 11,000 units are 154,000/-
If you read the question, it says the total fixed costs have increased by 10% after an activity level of 11,000 units. That means the amount 154,000/- is 110%. To bring it back to 100% you have to multiply it by 100 and divide it by 110
Here is a simple formula
Amount x (the percentage where you want to go)/(the percentage you are at now)
However i recommend you understand the concept i explained
If you read the question, it says the total fixed costs have increased by 10% after an activity level of 11,000 units. That means the amount 154,000/- is 110%. To bring it back to 100% you have to multiply it by 100 and divide it by 110
Here is a simple formula
Amount x (the percentage where you want to go)/(the percentage you are at now)
However i recommend you understand the concept i explained