Question

Company makes a product with a selling price of Rs 20 per unit and variable costs of Rs 12 per unit. The fixed costs for the period are Rs 40,000 What is the required output level to make a target profit of Rs0,000?

Answer 1

Answer:

The formula used to calculate costs is FC + VC(Q) = TC, where FC is fixed costs, VC is variable costs, Q is quantity, and TC is total cost. It is important to understand that variable costs, as opposed to fixed costs, are those costs that change based on the amount of product being produced