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What is the total cost of production of 20 units, if fixed cost is Rs. 5,000 and variable cost is Rs. 2/-?
- a)5400
- b)5040
- c)4960
- d)5020
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
What is the total cost of production of 20 units, if fixed cost is Rs....
Cost of Production Calculation
- Fixed Cost = Rs. 5,000
- Variable Cost per unit = Rs. 2
- Number of units = 20
Total Cost of Production
- Total Variable Cost = Variable Cost per unit x Number of units = 2 x 20 = Rs. 40
- Total Cost = Fixed Cost + Total Variable Cost = 5000 + 40 = Rs. 5040
Therefore, the total cost of production of 20 units is Rs. 5040.
Most Upvoted Answer
What is the total cost of production of 20 units, if fixed cost is Rs....
Given data:
Fixed cost = Rs. 5,000
Variable cost = Rs. 2/-
Number of units produced = 20
Calculation:
Total cost of production can be calculated by adding fixed cost and variable cost multiplied by the number of units produced.
Total Cost = Fixed Cost + (Variable Cost × Number of Units Produced)
Total Cost = 5,000 + (2 × 20)
Total Cost = 5,000 + 40
Total Cost = Rs. 5,040
Therefore, the total cost of production of 20 units is Rs. 5,040.
Hence, option (b) 5040 is the correct answer.
Fixed cost = Rs. 5,000
Variable cost = Rs. 2/-
Number of units produced = 20
Calculation:
Total cost of production can be calculated by adding fixed cost and variable cost multiplied by the number of units produced.
Total Cost = Fixed Cost + (Variable Cost × Number of Units Produced)
Total Cost = 5,000 + (2 × 20)
Total Cost = 5,000 + 40
Total Cost = Rs. 5,040
Therefore, the total cost of production of 20 units is Rs. 5,040.
Hence, option (b) 5040 is the correct answer.
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Community Answer
What is the total cost of production of 20 units, if fixed cost is Rs....
Fixed cost cannot be change but variable cost cn thats why we take tha product of production and cost.
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What is the total cost of production of 20 units, if fixed cost is Rs. 5,000 and variable cost is Rs. 2/-?a)5400b)5040c)4960d)5020Correct answer is option 'B'. Can you explain this answer?
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