In a factory, the total variable costs are $1,100 if 500 units are produced. If 800 units are produced, the variable cost per unit would be

Name: In a factory, the total variable costs are $1,100 if 500 units are produced. If 800 units are produced, the variable cost per unit would be
Brand: Quizplus
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Question

Quizplus · Accepted Answer

We use the formula:

Variable cost per unit = (Total variable costs) / (Number of units produced)

Variable cost per unit = (1100)/(500) = $2.20

Therefore, the variable cost per unit for 800 units would still be $2.20.

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