A company has a total of $11,750 allocated for monthly costs. Fixed costs are $6650 a month and variable costs are $13 per unit. How many units can be manufactured a month?

Question

Quizplus · Accepted Answer

To find the number of units that can be manufactured, subtract the fixed costs from the total budget to find the amount available for variable costs: $11,750 - $6,650 = $5,100. Then, divide this amount by the variable cost per unit: $5,100 / $13 = 392 units.

A Company Has a Total of $11,750 Allocated for Monthly