Question

if fixed and variable cost at 60% capacity are rupees 9000 and rupees 12000 respectively total cost at 80% capacity would be​

Answer 1

Answer:

Total cost = 25000

1. fixed cost = 9000
2. variable cost =16000

Explanation:

THERE WILL BE NO CHANGE IN FIXED COST EVEN WHEN CHANGE IN CAPACITY

FOR BREIF EXPLANATION REFER THE DIAGRAM

Answer 2

Total cost at 80% capacity is Rs. 25000

Given:

At 60% capacity

• Fixed cost - Rs. 9000
• Variable Cost - Rs. 12000

To find:

Total cost at 80%

Solution:

At 60% capacity

• Fixed cost - Rs. 9000
• Variable Cost - Rs. 12000

At 80% the fixed cost will be Rs. 9000 as the fixed cost remains constant throughout everything.

Variable Cost

$Variable \: cost \: at \: 60\% = Rs. 12000$

$Variable \: cost \: at \: 80 \% = \frac{12000}{60\%} \times 80\%$

$Variable \: cost \: at \: 80 \% =Rs. 16000$

At 80%

• Fixed cost - Rs. 9000
• Variable Cost - Rs. 16000

$Total \: cost = Fixed \: Cost + Variable \: Cost$

$Total \: cost = 9000 + 16000$

$Total \: cost = 25000$

Therefore, the Total cost at 80% is Rs. 25000.