What is the variable cost of producing 3000 units?
(A) $0
(B) $500
(C) $1000
(D) $3000 - HSC - SSCE Business Studies - Question 11 - 2002 - Paper 1
Question 11
What is the variable cost of producing 3000 units?
(A) $0
(B) $500
(C) $1000
(D) $3000
Worked Solution & Example Answer:What is the variable cost of producing 3000 units?
(A) $0
(B) $500
(C) $1000
(D) $3000 - HSC - SSCE Business Studies - Question 11 - 2002 - Paper 1
Step 1
Identify the Variable Cost
96%
114 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
Variable costs are costs that change in proportion to the good or service that a business produces. For the production of 3000 units, we need to determine the cost that varies with the production level.
Step 2
Estimate Variable Cost
99%
104 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
Assuming that variable costs are estimated as a function of units produced, we select option (B) $500 as the given answer based on the marking scheme, indicating it is the correct choice.
