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14 May, 09:35

suppose that a new alloy is invented which uses copper and zinc in fixed proportions where 1 unit of output requires 3 units of copper and 3 units of zinc for each unit of alloy produced. If no other inputs are needed, the price of copper is $3, and the price of zinc is $3, what is the average cost per unit when 4,000 units of the alloy are produced?

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  1. 14 May, 10:49
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    the average cost per unit when 4,000 units of the alloy are produced : $18.00

    Explanation:

    Step 1. Calcutate the the Unit Cost of the New

    Materials Costs

    Copper (3 units * $3) = $9.00

    Zinc (3 units $3) = $9.00

    Total = $18.00

    Step 2 Calculate the Total Cost of the New

    Total Cost=Unit Cost * Total Units of Production

    = $18.00 * 4,000 units

    = $72,000
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