The total cost of manufacturing 360 units of a product is P6,620 and if 450 units are manufactured, the total cost will be P7,475. a) What is the variable cost per unit? b) What is the fixed cost? c) What is the average manufacturing cost for the first 360 units, for the 450 units, is it the same, Why? d) What is the total variable cost or 360 units? For 450 units, is it the same, why? e) What would be the selling price per unit if the desired profit per unit is 25%
The total cost of manufacturing 360 units of a product is P6,620 and if 450 units are manufactured, the total cost will be P7,475. a) What is the variable cost per unit? b) What is the fixed cost? c) What is the average manufacturing cost for the first 360 units, for the 450 units, is it the same, Why? d) What is the total variable cost or 360 units? For 450 units, is it the same, why? e) What would be the selling price per unit if the desired profit per unit is 25%
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The total cost of manufacturing 360 units of a product is P6,620 and if 450 units are manufactured,
the total cost will be P7,475.
a) What is the variable cost per unit?
b) What is the fixed cost?
c) What is the average manufacturing cost for the first 360 units, for the 450 units, is it the same,
Why?
d) What is the total variable cost or 360 units? For 450 units, is it the same, why?
e) What would be the selling price per unit if the desired profit per unit is 25%
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