Question

If 294.00 units are made and demand is 287.00. Your fixed expenses are $1257.00. Your variable cost per unit is $2.25. Your Sales price is 6.49. The variable expenses for the day is?

Answer 1

If the  294.00 units are made and the cost per unit is $2.25 then variable expenses for the day is $661.5.

Given that 294.00 units are made and the variable cost per unit is $2.25

We have to find variable expenses for the day.

Total variable expenses for the day are a product of the output and the variable cost per unit.

So the variable expenses = no. of output x variable cost per unit

Variable expenses = 294 x 2.25

Variable expenses = 661.5

Hence the variable expenses for the day is $661.5

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