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?

Question

Quizplus · Accepted Answer

The unit variable cost is calculated by dividing the total variable costs by the number of units produced. Here, $5,000 divided by 100 units equals $50.00 per unit. The unit variable cost remains the same regardless of the number of units produced, so it is $50.00 even if 120 canisters are produced.

In June, Ace Manufacturing Plant Produced 100 Units of Propane