A business incurs the following costs per unit: Labor $125/unit; Materials $45/unit and rent $250,000/month. If the firm produces 1,000,000 units a month, the total variable costs equal

a. $125Million

b. $45Million

c. $1Million

d. $170Million

The correct answer is D

Explanation:

The variable cost for the following is computed as:

Total variable cost = Produced units × Labor per unit + Produced units × Materials per unit

where

Produced units is 1,000,000

Labor per unit is $125 per unit

Materials per units is $45 per unit

Putting the values above:

Total variable cost = 1,000,000 × $125 + 1,000,000 × $45

Total variable cost = 125,00,000 + 45,000,000

Total variable cost = $170,000,000 or 170 million

Note: Rent is not the variable cost as rent is the fixed cost so will not involved above.

probably not? : o

unless you work at a circus or any other job like that. c:

maybe..

b. a single paragraph.

a paragraph is a series of sentences that are organized and make sense, and are all related to a single topic . almost every piece of writing you do that is longer than a few sentences should be organized into paragraphs. this is because paragraphs show a reader where the subdivisions of an essay begin and end, and thus the reader see the organization of the essay into subjects in order to be able to understand its main points.