Based on analyzing the production cost (Y) to units produced (X), the following relationship was found: Y=$5,000+$20X. The $20 in the equation represents: Select one: a. Variable production costs per unit. b. None of the answers given Oc. Total variable production costs. O d. Total fixed production costs
Based on analyzing the production cost (Y) to units produced (X), the following relationship was found: Y=$5,000+$20X. The $20 in the equation represents: Select one: a. Variable production costs per unit. b. None of the answers given Oc. Total variable production costs. O d. Total fixed production costs
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Based on analyzing the production cost (Y) to units produced (X), the following relationship was
found: Y=$5,000+$20X. The $20 in the equation represents:
Select one:
Oa. Variable production costs per unit
Ob. None of the answers given
Oc Total variable production costs.
O d. Total fixed production costs
Oe. Fixed production costs per unit.
Next page
age](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Feeb403f4-3f85-4169-9d34-15c3d259e47e%2F6bc538b7-7d8f-4e56-b536-73f75ff4ef10%2Fmdr9f0g6_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Based on analyzing the production cost (Y) to units produced (X), the following relationship was
found: Y=$5,000+$20X. The $20 in the equation represents:
Select one:
Oa. Variable production costs per unit
Ob. None of the answers given
Oc Total variable production costs.
O d. Total fixed production costs
Oe. Fixed production costs per unit.
Next page
age
Expert Solution
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Step 1
The costs of production can be largely divided into two parts- Fixed cost and variable costs
Fixed costs are the costs that do not change with a change in the number of units produced.
Variable costs are cost which change with respect to the number of units produced and usually are a function of the number of units produced.
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