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18 February, 22:05

Manufacturing Product X involves both variable costs and fixed costs; the total cost of manufacturing 50 units is $200. The total cost of manufacturing 80 units is $290. What is the variable cost per unit of manufacturing product X

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  1. 18 February, 22:34
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    Answer: The variable cost per unit of manufacturing product X is $3.

    Explanation: If manufacturing 50 units costs $ 200.

    And manufacturing 80 units costs $ 290.

    The variable cost of manufacturing (80 - 50 = 30) 30 more units is ($ 290 - $ 200 = $ 90) $ 90.

    If we divide the variable cost over the units (90/30 = $ 3) We know that the variable cost of producing a unit of product X is $ 3.
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