Question

Kishore purchased factory premises for $360 000 on 1 January 2019. During that financial year, he spent $35 000 on raw materials and employed 20 assembly-line workers who were each paid on a $1 piece rate basis. In the year ending 31 December 2019, he spent $25 000 on a delivery van and produced 2000 units of output.

Calculate Kishore’s total variable costs for the year ending 31 December 2019.

Answer 1

Answer:

factory = 36000

raw material = 35000

delivery van = 25,000

worker = 40,0000

total = 36000 + 35000 + 25000 + 40,000

= 4,60,000.