Crazy Toys, Inc.
Cost of Materials
$\begin{array}{lr}
\text { No. of toys produced } & \text { Total cost of materials } \
100,000 & \$ 30,000 \
200,000 & \$ 60,000 \
300,000 & \$ 90,000
\end{array}$
-Refer to the Figure.What is the materials cost per unit of output?
A)$0.10
B)$0.30
C)$0.40
D)$0.60

Question

Crazy Toys, Inc. 
Cost of Materials
$\begin{array}{lr}
\text { No. of toys produced } & \text { Total cost of materials } \
100,000 & \$ 30,000 \
200,000 & \$ 60,000 \
300,000 & \$ 90,000
\end{array}$
-Refer to the Figure.What is the materials cost per unit of output?
A)$0.10
B)$0.30
C)$0.40
D)$0.60

Quizplus · Accepted Answer

The materials cost per unit of output can be calculated by dividing the total cost of materials by the number of toys produced. For any of the given levels of production, the calculation is the same: for 100,000 toys, the cost per unit is $30,000 / 100,000 = $0.30. This shows that the materials cost per unit of output is constant across different levels of production.

Crazy Toys, Inc -Refer to the Figure