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The cost of production per unit of item produced is 1$ as long as total units produced is less than 2500. If more than 2500 units are produced than the cost per unit actually comes down to 0.8$per unit.
The cost per unit actually comes down to 0.8$per unit.
We have given that,
The electricity contract with the utility company is structured so that higher daily energy usage is charged at a lower rate.
The plant’s production processes are performed primarily by robots that are able to work longer hours, when needed, at no additional cost.
Overtime wages were required to produce at levels above 25,000 units.
What is the cost?
A cost is an expenditure required to produce or sell a product or get an asset ready for normal use.
The cost of production per unit of the item produced is 1$ as long as the total units produced are less than 2500.
If more than 2500 units are produced then the cost per unit actually comes down to 0.8$per unit.
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