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
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Answer
Variable costs are costs that change with the level of production. They typically include costs for materials, labor, and other expenses that increase as production increases.
Step 2
Calculate the variable cost for 3000 units
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Answer
In this scenario, if the variable cost is indicated by the options given, we need to analyze each:
Option (A) $0: This would mean no cost, which is typically implausible unless producing nothing.
Option (B) $500: This would represent a lower variable cost per unit.
Option (C) 1000:Thissuggestsacostofapproximately0.33 per unit.
Option (D) 3000:Thisrepresentsadirectcostperunitwhichequals1 per unit.
Based on common variable cost structures, the correct answer would likely reflect some proportion of the cost relative to production, suggesting $500 for producing 3000 units.
Step 3
Select the answer from the options
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Answer
Based on the analysis, the correct option is (B) $500.
