Ask Question
27 May, 22:09

In june, ace manufacturing plant produced 100 units of propane canisters for sale. the total variable costs were $5,000 and the fixed costs for the plant amounted to $3,000. how much is the unit variable cost for canisters if 120 canisters are produced?

+2
Answers (1)
  1. 27 May, 23:19
    0
    Calculation of the unit variable cost for canisters:

    Unit Variable cost remains same irrespective of the level of the production units. In the given case we are told that in June, ace manufacturing plant produced 100 units of propane canisters for sale and the total variable costs were $5,000. It means the Unit Variable Cost is $5,000 / 100 Units = $50 per unit.

    Hence, the unit variable cost shall be $50 per unit at the level of 120 canisters also.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “In june, ace manufacturing plant produced 100 units of propane canisters for sale. the total variable costs were $5,000 and the fixed costs ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers