The basic cost formula: FC + VC = TC Fixed Costs + (Variable Cost per unit x number of units) = Total Costs Kibera Ltd. (figures provided by the financial accountant) Year 1 Year 2 Total Revenue 500,000 700,000 Less: Total Costs (314,000) (342,600) Reported Income 186,000 357,400 Units Sold # 5,000 7,000 Reported cost per unit) -62.80 -48.94 Reported profit per unit 37.2 51.06 For decision-making for year 3 estimate the variable cost per unit and the fixed costs. VC = FC =