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The direct material cost is £10 000 when 2000 units are produced. What is the direct material cost for 2500 units produced?

User Obysky
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1 Answer

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Question:-

The direct material cost is £10 000 when 2000 units are produced. What is the direct material cost for 2500 units produced?

Answer:-

£12500

Step-by-step explanation:-

Given,

The direct material cost when 2000 units are produced = £10,000

Now,

The direct material cost for 1 unit = 10000/2000 = £5

Material cost when 2500 units are produced = 2500×5 = £12500

User M A Russel
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