Question

the total cost of manufacture 4000 unit of the product is rs 450000 which includes fixed costs of rs 250000 if the company desire to produce 5000 unit then the total cost will be

Answer 1

Answer:

450000+4000=490000

therefore 490000-250000=240000ans

Answer 2

The total cost to produce 5000 unit will be Rs. 500000.

Explanation:

Given:

The total cost of manufacture 4000 unit of the product is Rs. 450000 which includes fixed costs of Rs. 250000.

To Find:

The total cost to produce 5000 unit.

Formula Used:

Total cost= Fixed cost + variable cost  

Solution:

As given-the total cost of manufacture 4000 unit of the product is Rs. 450000 which includes fixed costs of Rs. 250000.

Total cost to produce 4000 unit = Rs.450000

Fixed cost = Rs.250000

Total cost  to produce 4000 unit =Fixed cost + Variable cost  to produce 4000 unit

450000 = 250000+ Variable cost  to produce 4000 unit

Variable cost to produce 4000 unit =450000 -250000

                                                           = Rs.200000

The  variable  cost to produce 4000 unit = Rs.200000

The  variable  cost to produce 1 unit $=\frac{200000}{4000} =Rs.50$

The variable  cost to produce 5000 unit $= 5000\times50$

                                                                   $= Rs.250000$

The total cost to produce 5000 unit =Fixed cost + Variable cost cost to produce 5000 unit

                                                            $= 250000+250000$

                                                           $= Rs.500000$

Thus,the total cost to produce 5000 unit is Rs.500000.

PROJECT CODE #SPJ3