CLEAR
Toprankers-Info

+91 7676564400

Mobile App

Get it on Google Play
Discussions
Tags:

Articles

Discussions
Submit Discussion
Yogesh Gadade

· started a discussion

· 1 Months ago

q103 (Question:144481.0)

from where 30000 and 37500comes

Question:
The total cost of producing a certain number of units of an article is partly fixed and partly varies directly with the number of units of that article produced.  The average cost of producing 15,000 units of that article is Rs.2, while that of producing 25,000 units of that article is Rs.1.5. Find the variable cost of each unit of the article produced.
Options:
A) Rs.1.25 
B) Rs.1.50
C) Rs.0.75 
D) Rs.2.50
E) Rs.2.90
Solution:

Ans (c) Let fixed cost be F and variable cost per unit of an article produced be K.

30,000 = F +15,000 K (∴ Total cost = 2 × 15000 = 30000)

37,500 = F + 25,000 K

Subtracting the first equation from the second, 7500

= 10,000 K ⇒ K = 0.75

Hence variable cost of each unit produced is Rs.0.75. 

Knowledge Expert

· commented

· 1 Months ago

otal cost = 2 × 15000 = 30000
30000+7500 gives 37500
-logo
We at aim to provide most comprehensive content & test for practice which is carefully divided into various chapters and topics to help you focus on your weak areas.Our Practice mock test gives you unmatched analytics to help you realize your strong areas,time management and improvement areas.Our Short & Crisp notes on each topic will help you to quickly revise the topic along with the tips & tricks of the exams.
More About
-Info
-Info

Mobile App

Get it on Google Play
About Us Campus Ambassador Careers Contact Us Refund Policy

All Rights Reserved Top Rankers

User Policy
Disclaimer
Terms & Conditions