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What is the cost of production in Rs per tonne for a daily production of 100 tonnes?
amarVashishth
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Dec 9, 2015
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A foundry has a fixed daily cost of Rs 50,000 whenever it operates and a variable cost of Rs 800Q, where Q is the daily production in tonnes. What is the cost of production in Rs per tonne for a daily production of 100 tonnes?
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amarVashishth
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$\begin{align*} \text{total production cost} &= 50000+800Q\\ &= 50000+800\times 100\\ &=130000 \end{align*}$
this is a cost for 100 tonnes. So, per ton production cost = $\frac{130000}{100}= 1300$
amarVashishth
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