Question

the cost to produce 7,500 widgets. cost of material= 3,500cost of labour=700what is the average cost of produce a single widget?

Answer 1

The material cost is 3,500 and the labour cost is 700 in producing 7,500 widgets.

The average cost to produce is the sum of the cost divided by the number of widgets.

This will be :

`(3500+700)/(7500)=(4200)/(7500)=0.56`

The answer is 0.56 per widget