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What is the total variable cost if a company produces 1,000 units with a variabl

Practice Questions

Q1
What is the total variable cost if a company produces 1,000 units with a variable cost per unit of $40?
  1. $40,000
  2. $50,000
  3. $60,000
  4. $70,000

Questions & Step-by-Step Solutions

What is the total variable cost if a company produces 1,000 units with a variable cost per unit of $40?
  • Step 1: Identify the variable cost per unit. In this case, it is $40.
  • Step 2: Identify the number of units produced. Here, it is 1,000 units.
  • Step 3: Multiply the variable cost per unit by the number of units. So, calculate $40 * 1,000.
  • Step 4: The result of the multiplication is the total variable cost. In this case, it equals $40,000.
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