Cox Ward
05/11/2024 · Middle School

4. In a manufacturing process, when 1000 units are produced, Renufacturing costs (assume all are variable costs) are incurred, while the manus). 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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For 1000 units: - Total Cost = \( (V \times 1000) + 5000 \) - Unit Cost = \( \frac{(V \times 1000) + 5000}{1000} \) For 2000 units: - Total Cost = \( (V \times 2000) + 5000 \) - Unit Cost = \( \frac{(V \times 2000) + 5000}{2000} \)

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