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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?
Correct answer is '1300'. Can you explain this answer?
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A foundry has a fixed daily cost of Rs 50,000 whenever it operates and...
total production cost
=50000+800Q
=50000+800�100
=130000
This is a cost for 100 tonnes. So, per ton production cost = 130000/100 = 1300
Most Upvoted Answer
A foundry has a fixed daily cost of Rs 50,000 whenever it operates and...
Cost of Production Calculation for a Daily Production of 100 Tonnes:
Fixed Cost:
The fixed cost of the foundry is given as Rs 50,000 whenever it operates. This cost remains constant regardless of the production level.
Variable Cost:
The variable cost of the foundry is given as Rs 800Q, where Q is the daily production in tonnes. This cost varies based on the production level.
Calculating the Total Cost:
To calculate the total cost of production for a daily production of 100 tonnes, we need to consider both the fixed and variable costs.
1. Fixed Cost: Rs 50,000
2. Variable Cost: Rs 800Q
Substituting Q = 100 tonnes:
Variable Cost = Rs 800 * 100 = Rs 80,000
Total Cost = Fixed Cost + Variable Cost
Total Cost = Rs 50,000 + Rs 80,000
Total Cost = Rs 1,30,000
Cost of Production per Tonne:
To find the cost of production per tonne, we divide the total cost by the daily production in tonnes.
Cost of Production per Tonne = Total Cost / Daily Production
Substituting Total Cost = Rs 1,30,000 and Daily Production = 100 tonnes:
Cost of Production per Tonne = Rs 1,30,000 / 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.
Fixed Cost:
The fixed cost of the foundry is given as Rs 50,000 whenever it operates. This cost remains constant regardless of the production level.
Variable Cost:
The variable cost of the foundry is given as Rs 800Q, where Q is the daily production in tonnes. This cost varies based on the production level.
Calculating the Total Cost:
To calculate the total cost of production for a daily production of 100 tonnes, we need to consider both the fixed and variable costs.
1. Fixed Cost: Rs 50,000
2. Variable Cost: Rs 800Q
Substituting Q = 100 tonnes:
Variable Cost = Rs 800 * 100 = Rs 80,000
Total Cost = Fixed Cost + Variable Cost
Total Cost = Rs 50,000 + Rs 80,000
Total Cost = Rs 1,30,000
Cost of Production per Tonne:
To find the cost of production per tonne, we divide the total cost by the daily production in tonnes.
Cost of Production per Tonne = Total Cost / Daily Production
Substituting Total Cost = Rs 1,30,000 and Daily Production = 100 tonnes:
Cost of Production per Tonne = Rs 1,30,000 / 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 daily production of 100 tonnes?Correct answer is '1300'. Can you explain this answer?
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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?Correct answer is '1300'. Can you explain this answer? for GATE 2024 is part of GATE preparation. The Question and answers have been prepared according to the GATE exam syllabus. Information about 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?Correct answer is '1300'. Can you explain this answer? covers all topics & solutions for GATE 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 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?Correct answer is '1300'. Can you explain this answer?.
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?Correct answer is '1300'. Can you explain this answer? for GATE 2024 is part of GATE preparation. The Question and answers have been prepared according to the GATE exam syllabus. Information about 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?Correct answer is '1300'. Can you explain this answer? covers all topics & solutions for GATE 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 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?Correct answer is '1300'. Can you explain this answer?.
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