Question

21. If Total Cost of 5,000 units is 20,000, 8,000 units is 26,000. per unit variable
cost will be :
(a) 4
(b) 2
(c) 5
(d) 3​

Answer 1

Answer:

b. 2

easy one any doubt ask me

Answer 2

Answer:

The correct answer is b) 2

Explanation:

Total cost of 20000 Units = Rs.21000

Total Cost of 50000 Units = Rs.30000 (excluding the additional fixed cost)

Differential values = 30000 units = Rs.9000

Variable cost per unit = Difference in value/difference in units

                                    = Rs.9000/30000

                                    = Rs.0.30 Per units

Now total cost can be bifurcated as:

               Units                Total Cost        Variable Cost @.30        Fixed Cost                  

              20000                21000                 6000                          15000

              50000                34000               15000                          19000

              30000                 28000               9000                          19000              

Cost per units for 30000 units= 28000/30000

                                                    = Re. 0.93 per unit

Variable cost per unit =

change in total cost ÷ change in quantity

(26000-20000) ÷ (8000-5000)

6000 ÷ 3000

₹2

The time period constant price refers to a cost that doesn't exchange with an boom or lower in the variety of products or offerings produced or bought. constant expenses are costs that ought to be paid with the aid of a enterprise, unbiased of any precise commercial enterprise sports. this indicates fixed costs are generally indirect, in that they don't follow to a agency's manufacturing of any goods or offerings. corporations can normally have  sorts of expenses—fixed or variable costs—which collectively result in their general prices. Shutdown factors tend to be carried out to reduce fixed fees.

fixed fees discuss with expenses that a agency ought to pay, impartial of any precise business activities.

those prices are set over a targeted time frame and do now not change with manufacturing stages.

fixed fees can be direct or indirect and may have an effect on profitability at exclusive factors on the profits assertion.

companies have interest payments as constant fees which might be a element for net profits.

price shape control is an crucial part of enterprise analysis that appears at the consequences of constant and variable charges on a business usual.

If Total Cost of 5,000 units is 20,000, 8,000 units is 26,000. per unit variable cost will be : (a) 4 (b) 2 (c) 5 (d) 3​

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If Total Cost of 5,000 units is 20,000, 8,000 units i

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