Question

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

Answer 1

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.