Answer:
$21.67
Explanation:
Exhibit 21-3 is attached with the answer .Please find it.
Total cost of production includes the fixed cost and variable cost. Fixed Cost remains constant as $500 in the exhibit, but the variable cost changes with each production level.
Cost of producing 60 units
Variable cost = $800
Fixed cost = $500
Total cost = $800+500 = $1,300
Product cost per unit = Total cost / numbers of unit = $1,300 / 60 = $21.67
Answer:
$6600
Explanation:
Given: Selling price= $250 per unit
Variable cost= $181 per unit.
Fixed cost= $430000.
Expected Profit= $25400.
Let´s assume the number of units sold be "x".
Revenue (R) =
Cost of product (C)=
∴ Cost of product (C)=
Now, finding the number of unit sold.
Forming an equation for profit.
We know, Profit=
⇒
Opening parenthesis.
⇒
⇒
Adding both side by 430000
⇒
Dividing both side by 69
⇒
∴
Hence, total number of units sold to earn $25400 is 6600 units.