Question

A firm produces 500 units per week. it hires 20 full-time workers (40 hours/week) at an hourly wage of $15. raw materials are ordered weekly and they costs $10 for every unit produced. the weekly cost of the rent payment for the factory is $2,250. how do the overall costs breakdown

Answer 1

Raw material for 500 units per week = 500 x $10 = $5000

Cost of hiring 20 workers per week = 20 x 40  x 25 = $12000

Rental = $2250

Total = 5000 + 12000 + 2250 = $19 250