The information is as below:Month Units110002200033000Calculate the minimum selling price per unit the company should charge to Break Even in month five(5) assuming production was increasing the same rate as the three months given.Variable cost per unitTotal fixed costsTotal costsK1,000,000K1,200,000K1,600,000Fixed costs per unitTotal variable costs

The total cost of a firm includes the fixed cost, which remains the same irrespective of the output,…

Answered: inimum selling price per unit the…

inimum selling price per unit the company should charge to Break Even in oduction was increasing the same rate as the three months given. r unit unit Osts

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 8SQP

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Concept explainers

Cost of Production

In economic theory, production costs are the costs incurred by an industrial organization when it engineers a project or provides a service that generates revenue and benefits. Labor costs, raw materials, consumable manufacturing costs, and general overhead sum up, accounting for production costs. Total cost data is calculated by combining total direct costs of materials, labor costs, and total production costs.

Question

The information is as below:
Month Units
1
1000
2
2000
3
3000
Calculate the minimum selling price per unit the company should charge to Break Even in month five
(5) assuming production was increasing the same rate as the three months given.
Variable cost per unit
Total fixed costs
Total costs
K1,000,000
K1,200,000
K1,600,000
Fixed costs per unit
Total variable costs

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