Question

A business has a fixed costs of US$100 000 and variable costs of US$5 per unit.

Units of output are sold for US$25.
What is total variable cost if 50 000 units are produced?

Answer 1

Answer:
$250,000 is the variable cost .
Explanation:
50,000 units x $5 per unit = $250,000 variable cost

Answer 2

$250,000

Step-by-step explanation:

50,000 units × $5 per unit = $250,000