Question

for a table manufacturing company, selling price for a table is $63.00 per unit, variable cost is $20.00 per unit, labor charge is $10.39 per unit, rent is $623.00 per month and transportation is $1 per tables. if 50 tables are sold in a month how much is the fixed cost for that month?

Answer 1

To calculate the fixed cost for the table manufacturing company, subtract the variable costs from the total costs. In this case, the fixed cost for the month is $430.50.

Step-by-step explanation:

To calculate the fixed cost for the table manufacturing company, you need to subtract the variable costs from the total costs. The variable costs consist of the labor charge and transportation costs. Given that the labor charge is $10.39 per unit and there are 50 tables sold in a month, the total labor charge would be 50 tables * $10.39 = $519.50. The transportation cost is $1 per table, so the total transportation cost would be 50 tables * $1 = $50.

To find the fixed cost, subtract the variable costs from the total costs. We know that the total costs are equal to the selling price minus the variable costs. The selling price per unit is $63.00 and the variable costs per unit are $20.00, so the total variable costs for 50 tables would be 50 tables * $20.00 = $1000.

Therefore, the fixed cost for the month would be:

$1000 (total variable costs) - $519.50 (labor charge) - $50 (transportation costs) = $430.50