madinashabana11 (MBA) (1102 Points)
01 November 2012Friends plz solve this........
A Plant produces a product in the quantity of 10,000 units at a cost of Rs. 3 per unit. If 20,000 units are produced, the cost per unit is Rs. 2.50. What is the variable cost per unit?
( Ans: Fixed cost Rs.10,000/- , Variable Cost P.U.Rs.2/-)
It is Simple Equation
assume Variable cost per unit =X
assume Fixed cost per unit =Y
Total Cost = Variable Cost+Fixed Cost
& Toatal Cost= CPU * Units
Variable cost=V cpu* Units
Our Equation are:
1. 30000= 10000X+Y
2. 50000=20000X+Y
on solving this u will get X=Rs.2 which is Variable cost per unit.
now put x value in 1 Equation you will get Y=10000 which is Fixed Cost.
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