In a factory, the total variable costs are $1,100 if 500 units are produced. If 400 units are produced, the total variable costs would be

Name: In a factory, the total variable costs are $1,100 if 500 units are produced. If 400 units are produced, the total variable costs would be
Brand: Quizplus
Rating: 4.9 (48 reviews)

Question

Quizplus · Accepted Answer

Variable costs change with the level of production. If 500 units cost $1,100, then the cost per unit is $1,100/500 = $2.20. For 400 units, the cost would be 400 * $2.20 = $880.

In a Factory, the Total Variable Costs Are $1,100 If