Allan Reid
06/22/2024 · Primary School

3. Write down the equation used to determine the unit cost of a product. 4. In a manufacturing process, when 1000 units are produced, R 10000 prime costs (assume all are variable costs) are incurred, while the manufacturing overheads amount to R5 000 (assume all are fixed costs). a. Calculate the total cost of production and the unit cost of the product. b. Now calculate the total cost of production and the unit cost of the product, if the number of units produced increases to 2000 units.

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3. Unit Cost = Total Cost / Number of Units Produced 4. a. Total Cost = R 15,000, Unit Cost = R 15 per unit b. Total Cost = R 15,000, Unit Cost = R 7.50 per unit

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