What is the total cost if fixed costs are $10,000, variable cost per unit is $5,

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Question: What is the total cost if fixed costs are $10,000, variable cost per unit is $5, and 1,000 units are produced?

Options:

Correct Answer: $20,000

Solution:

Total Cost = Fixed Costs + (Variable Cost per Unit * Number of Units) = $10,000 + ($5 * 1,000) = $10,000 + $5,000 = $15,000.

What is the total cost if fixed costs are $10,000, variable cost per unit is $5, and 1,000 units are produced?

What is the total cost if fixed costs are $10,000, variable cost per unit is $5, and 1,000 units are produced?

Step 1: Identify the fixed costs. In this case, the fixed costs are $10,000.
Step 2: Identify the variable cost per unit. Here, the variable cost per unit is $5.
Step 3: Identify the number of units produced. In this case, 1,000 units are produced.
Step 4: Calculate the total variable costs by multiplying the variable cost per unit by the number of units. This is $5 (variable cost per unit) * 1,000 (units) = $5,000.
Step 5: Add the total variable costs to the fixed costs to find the total cost. This is $10,000 (fixed costs) + $5,000 (total variable costs) = $15,000.

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