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A foundry has a fixed daily cost of Rs 50,000 whenever it operates and a variable cost of Rs 800Q,
where Q is the daily production in tonnes. What is the cost of production in Rs per tonne for a daily
production of 100 tonnes?
where Q is the daily production in tonnes. What is the cost of production in Rs per tonne for a daily
production of 100 tonnes?
(Important : you should answer only the numeric value)
Correct answer is '1300'. Can you explain this answer?
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Most Upvoted Answer
A foundry has a fixed daily cost of Rs 50,000 whenever it operates and...
Fixed Cost: 50000Variable Cost: 800×100 = 80000
Total Cost = 130000
so, Cost per tonne = (50000+80000)÷100 = 130000÷100 = 1300
Total Cost = 130000
so, Cost per tonne = (50000+80000)÷100 = 130000÷100 = 1300
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Community Answer
A foundry has a fixed daily cost of Rs 50,000 whenever it operates and...
Cost of Production Calculation:
The cost of production can be calculated by adding the fixed cost and the variable cost. In this case, the fixed cost is Rs 50,000 and the variable cost is Rs 800Q, where Q is the daily production in tonnes.
Fixed Cost:
The fixed cost is the cost that does not change with the level of production. In this case, the fixed cost is Rs 50,000, which means that the foundry incurs this cost regardless of the daily production.
Variable Cost:
The variable cost is the cost that changes with the level of production. In this case, the variable cost is Rs 800Q, where Q is the daily production in tonnes. This means that for each tonne of production, the foundry incurs a variable cost of Rs 800.
Cost of Production per Tonne:
To calculate the cost of production per tonne, we need to divide the total cost (fixed cost + variable cost) by the daily production in tonnes.
Total Cost = Fixed Cost + Variable Cost
Total Cost = Rs 50,000 + Rs 800Q
Cost of Production per Tonne = Total Cost / Daily Production
Cost of Production per Tonne = (Rs 50,000 + Rs 800Q) / Q
Substituting the Values:
Given that the daily production is 100 tonnes, we can substitute Q = 100 in the equation.
Cost of Production per Tonne = (Rs 50,000 + Rs 800 * 100) / 100
Cost of Production per Tonne = (Rs 50,000 + Rs 80,000) / 100
Cost of Production per Tonne = Rs 130,000 / 100
Cost of Production per Tonne = Rs 1,300
Therefore, the cost of production per tonne for a daily production of 100 tonnes is Rs 1,300.
The cost of production can be calculated by adding the fixed cost and the variable cost. In this case, the fixed cost is Rs 50,000 and the variable cost is Rs 800Q, where Q is the daily production in tonnes.
Fixed Cost:
The fixed cost is the cost that does not change with the level of production. In this case, the fixed cost is Rs 50,000, which means that the foundry incurs this cost regardless of the daily production.
Variable Cost:
The variable cost is the cost that changes with the level of production. In this case, the variable cost is Rs 800Q, where Q is the daily production in tonnes. This means that for each tonne of production, the foundry incurs a variable cost of Rs 800.
Cost of Production per Tonne:
To calculate the cost of production per tonne, we need to divide the total cost (fixed cost + variable cost) by the daily production in tonnes.
Total Cost = Fixed Cost + Variable Cost
Total Cost = Rs 50,000 + Rs 800Q
Cost of Production per Tonne = Total Cost / Daily Production
Cost of Production per Tonne = (Rs 50,000 + Rs 800Q) / Q
Substituting the Values:
Given that the daily production is 100 tonnes, we can substitute Q = 100 in the equation.
Cost of Production per Tonne = (Rs 50,000 + Rs 800 * 100) / 100
Cost of Production per Tonne = (Rs 50,000 + Rs 80,000) / 100
Cost of Production per Tonne = Rs 130,000 / 100
Cost of Production per Tonne = Rs 1,300
Therefore, the cost of production per tonne for a daily production of 100 tonnes is Rs 1,300.
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A foundry has a fixed daily cost of Rs 50,000 whenever it operates and a variable cost of Rs 800Q,where Q is the daily production in tonnes. What is the cost of production in Rs per tonne for a dailyproduction of 100 tonnes?(Important : you should answer only the numeric value)Correct answer is '1300'. Can you explain this answer?
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