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.
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Explanation:
factory=360000
raw material=35000
delivery van=25000
workers=40000
total=460000
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