In a factory, the total variable costs are $600 if 500 units are produced. If 400 units are produced, the total variable costs would be

Question

Quizplus · Accepted Answer

Using the concept of proportional relationship, we can find the total variable costs for 400 units produced:

If 500 units cost $600
1 unit would cost $1.20 ($600 ÷ 500)

If 400 units cost $x
400 units would cost $480 ($1.20 x 400)

Therefore, the answer is A) $480.

In a Factory, the Total Variable Costs Are $600 If