Answered

Welcome to Westonci.ca, the ultimate question and answer platform. Get expert answers to your questions quickly and accurately. Get detailed and accurate answers to your questions from a dedicated community of experts on our Q&A platform. Join our Q&A platform to connect with experts dedicated to providing accurate answers to your questions in various fields.

Which of the following costs are variable?

\begin{tabular}{|c|c|c|}
\hline
Cost & 10,000 Units & 30,000 Units \\
\hline
1. & \[tex]$100,000 & \$[/tex]300,000 \\
\hline
2. & \[tex]$40,000 & \$[/tex]240,000 \\
\hline
3. & \[tex]$90,000 & \$[/tex]90,000 \\
\hline
4. & \[tex]$50,000 & \$[/tex]150,000 \\
\hline
\end{tabular}

1) 1 and 2
2) 1 and 4
3) only 1

Sagot :

GinnyAnswer
Step-by-Step Solution:

1. Identify the costs at different production levels:
- For 10,000 units: The costs are \[tex]$100,000, \$[/tex]40,000, \[tex]$90,000, and \$[/tex]50,000.
- For 30,000 units: The costs are \[tex]$300,000, \$[/tex]240,000, \[tex]$90,000, and \$[/tex]150,000.

2. Understand the concept of variable costs:
- Variable costs change proportionally with the level of production. This means if production increases, the variable cost should increase as well.

3. Compare the costs at 10,000 units and 30,000 units:
- Cost 1:
- At 10,000 units: \[tex]$100,000 - At 30,000 units: \$[/tex]300,000
- The cost changes from \[tex]$100,000 to \$[/tex]300,000 as production triples, indicating this is a variable cost.
- Cost 2:
- At 10,000 units: \[tex]$40,000 - At 30,000 units: \$[/tex]240,000
- The cost changes from \[tex]$40,000 to \$[/tex]240,000, which also suggests a variable cost because it increased significantly with more production.
- Cost 3:
- At 10,000 units: \[tex]$90,000 - At 30,000 units: \$[/tex]90,000
- The cost remains the same despite the increase in production, indicating this is a fixed cost.
- Cost 4:
- At 10,000 units: \[tex]$50,000 - At 30,000 units: \$[/tex]150,000
- The cost changes from \[tex]$50,000 to \$[/tex]150,000, which suggests this is a variable cost as well.

4. Identify the variable costs:
- Based on the comparisons, the costs that vary with production levels are:
- Cost 1 (from \[tex]$100,000 to \$[/tex]300,000)
- Cost 2 (from \[tex]$40,000 to \$[/tex]240,000)
- Cost 4 (from \[tex]$50,000 to \$[/tex]150,000)

The variable costs are 1, 2, and 4. Therefore, the correct answer is:

1) 1 and 2
Thank you for your visit. We are dedicated to helping you find the information you need, whenever you need it. We appreciate your time. Please come back anytime for the latest information and answers to your questions. We're glad you visited Westonci.ca. Return anytime for updated answers from our knowledgeable team.