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In this example, $650 / 1000 yields a per-unit cost of $0.65. Therefore, in order to pay for the raw materials, each of the 1000 hamburgers would need to be sold for at least $0.65. In the same light, in order to pay the rent for the building (fixed cost) each of the 1000 hamburgers would need to be factored in to the cost of rent: $9000 / 1000 yields $9.00 per-unit to pay the fixed cost. To find the total variable cost when our sales increase to 6000 units, we multiply the constant, $0.65 by the total units. Working backwards, this gives us a total variable annual cost of $3900 for 6000 units...
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