Question

The wacky widget company is planning to produce widgets. The company has rented space for its manufacturing operation at 4,000 per month. Each widget requires $32 worth or materials and $44 worth of labor. Find the cost of wacky widget company makes 350 widgets

Answer 1

The cost of Wacky Widget Company pays for making 350 widgets is $30,600 ($32*350 + $44*350 + $4000)based on the information on the question above. This cost consists of the variable cost and the fixed cost. The Wacky Widget Company still has to pay the rent expense in order to create its product besides the material and labor cost.