G10 Variable Cost Per Unit

• Business Studies
• Secondary Education

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Calculate the fixed cost for January for H Perfumery. Building rent: 3,500 Dirhams per month
Internet: 750 per month
Salary for 3 workers: 28,000 Dirhams per month

1. 31,250
2. 32,250
3. 33,200

Building rent: 5300 AED

Electricity utility bill: 1590 AED

Water utility bill: 800 AED

Yearly website fee: 1350 AED

Delivery Fee: 750 AED

Materials to produce products: 13,000 AED

Calculate the variable cost for January for Heart Perfumery.
Building rent: 5300 - Electricity: 1590
Water: 800 per month
Yearly website fee: 1350
Delivery Fee: 750 Dirhams per month
Materials to produce products: 13,000

1. 16,140
2. 17490
3. 20,140
4. 22,790

Calculate the total cost for January for H Perfumery.
Total Fixed Costs: 32,250
Total Variable Costs: 20,350

1. 52,600
2. 52,300
3. 52,100

Calculate the average cost for January for H Perfumery.
Total Fixed Costs: 32,250
Total Variable Costs: 20,350
Total Output:5,500

1. 9.06 AED
2. 9.56 AED
3. 9.65 AED

(Total variable cost/ Output)

The Elegance Abaya factory in Ajman produced 1,000 abayas last month. The cost of raw materials was 12,000 AED, electricity (based on consumption) was 2,500 AED and hourly wages for workers were 4,500 AED. Other variable costs added up to 5,000 AED.
a) Calculate the total variable cost. b) Calculate the variable cost per unit.