Smithson Fabrications Limited plans the following budget income and expenditure for the month of November 20X1: What would be the cost of producing one further unit of product?

Question

Smithson Fabrications Limited plans the following budget income and expenditure for the month of November 20X1:  What would be the cost of producing one further unit of product?

Quizplus · Accepted Answer

To calculate the cost of producing one further unit of product, we need to use the following formula:
Cost of Goods Sold / Total number of units produced
From the given budget income and expenditure statement, the Cost of Goods Sold is £9,250 and the total number of units produced is 240. So, applying the formula:
9250 / 240 = £38.50
Therefore, the cost of producing one further unit of product would be £38.50. Option C is the correct answer.

Smithson Fabrications Limited Plans the Following Budget Income and Expenditure