Solved

It Is Known That a Factory Has Some Fixed and Some

Question 22

Multiple Choice

It is known that a factory has some fixed and some variable costs.In one month,the output was 12,000 units and the cost £30,000.The following month,output had increased to 15,000 units and the cost was £36,000.
How much are the fixed and variable elements of production?


A) The fixed costs are £6,000 and the variable costs are £2 per unit
B) The variable costs are £2.50 in month 1 and £2.40 in month 2
C) The fixed costs are £6,000 and the variable costs are £0.50 per unit
D) The variable costs are £0.40 in month 1 and £0.42 in month 2

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions