COST ACCOUNTING
BREAK EVEN POINT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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If variable costs are $3 per unit, then the total variable costs of producing 3 500 units willbe:
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$3 500
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$35 000
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$1 050
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$10 500
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Explanation:
Detailed explanation-1: -If a firm produces 10 units of output and incurs $30 in average variable cost and $5 in average fixed cost, average total cost is: $35.
Detailed explanation-2: -To calculate variable costs, multiply what it costs to make one unit of your product by the total number of products you’ve created. This formula looks like this: Total Variable Costs = Cost Per Unit x Total Number of Units.
Detailed explanation-3: -Answer and Explanation: The correct answer is option c. 800 units.
There is 1 question to complete.