Question

When 19,000 units are produced variable costs are $41 per unit and total costs are $1,080,000. What are the total costs when 24,000 units are produced?

Answer 1

Explanation:

Here, produced units are 19,000 and variable cost per single unit is $41,

so total variable cost = total units * per unit variable cost .

$19000 \times 41 = 779000$

so the total variable cost is $7,79,000

And the total cost is $10,80,000

so the constant cost= total cost - total variable cost

$1080000 - 779000 = 310000$

the constant cost = $3,10,000

FOR 24000 UNITS

so the variable cost =total units * per unit variable cost

$24000 \times 41 = 984000$

total variable cost is $9,84,000

and total cost = variable cost + constant cost

$984000 + 310000 = 1294000$

so the total cost for 24000 unit is $12,94,000