• 2021-04-14
    An organisation manufactures a single product. The total cost of making 4,000 units is $20,000 and the total cost of making 20,000 units is $40,000. Within this range of activity the total fixed costs remain unchanged.What is the variable cost per unit of the product?
  • $1.25

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    • 0

      An analysis of past maintenance costs indicates that maintenance cost is an average of $0.40 per machine-hour at an activity level of 20,000 machine-hours and $0.50 per machine-hour at an activity level of 16,000 machine-hours. Assuming that this activity is within the relevant range, what is the total expected maintenance cost if the activity level is 18,500 machine-hours? A: $1,600 B: $6,960 C: $8,000 D: $9,000

    • 1

      In a long-run, it is worthwhile to sell a product only if the selling price exceeds________. A: the total of all the direct costs of the product B: the total manufacturing costs of the product C: the total of the fixed costs of the value chain D: full cost of the product and a markup that provides an adequate return on capital

    • 2

      Advertising costs are no longer in reasonable ______ to the total cost of the product.

    • 3

      Production costs of product Z vary depending on the level of activity. Costs have been recorded at various levels of activity as follows:What is the variable cost per unit?<br/>______

    • 4

      Fixed cost per unit of product = totalfixed manufacturing costs / some selected volume level.