Question

xercise 2.1 - Variable cost behaviour Variable cost calculations Homework. Unanswered Anonymous Sorny produces television sets. Each television set needs $65 in materials cost. What are my costs at the following activity levels: 50 units, 500 units, 5,000 units. (For credit enter the correct answer at 50 units). Numeric Answer: Cannot be empty

Answer 1

Variable cost changes with the scale of production because it is contact per unit basis.
For the given case variable cost is the materials cost which is $65 per unit
Cost for a different level of activity level
Activity Level			Cost
50 units	(50*$65)		$               3,250
500 units	(500*$65)		$             32,500
5000 units	(5000*$65)		$         3,25,000
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