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To make the total cost per unit as $400, How many units are to be produced?

<p><strong><em>A firm has a fixed cost of $4,000 for plant and equipment and an extra or marginal cost of $300 for each additional unit produced. To make the total cost per unit as $400 How many units are to be produced? </em></strong></p>

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Question added by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.
Date Posted: 2014/12/30

 +$300 Variable cost per unit 

=Fixed cost per unit $100

Total cost per unit $400

Then fixed cost per unit =4000/40 = $100

So answer is40 units

Vinod Jetley
by Vinod Jetley , Assistant General Manager , State Bank of India

Forty.

Salah Othman Yousef Alshambaati
by Salah Othman Yousef Alshambaati , مدير ادارة الحسابات , شركة انفال الجديدة للتجارة والمقاولات

    40 units

Sahar Alech
by Sahar Alech , Auditor / Financial Manager , Accounting Services Office

Forty units

Mir Mujtaba Ali
by Mir Mujtaba Ali , Internal Audit Manager , Confidential

All answered correctly i.e.40 units

Khaled Mohee Eldeen Abbas Mahmoud
by Khaled Mohee Eldeen Abbas Mahmoud , Chartered Accountant # 10465 , Self-employed

I agree with answers provided

tamer badran
by tamer badran , chief accountant , zaid alkazemi sons International for gen. trd. & cont. co.

it's40 units same like above

Mohamed Ezat Mahmoud  Mady
by Mohamed Ezat Mahmoud Mady , Accounting and Financial Manager , Trustmed

Forty Units To Be Produce

georgei assi
by georgei assi , مدير حسابات , المجموعة السورية

The Answer unites =40

Muhammad Javed
by Muhammad Javed , Manager Finance , EuroMoto

Units40 can be produced.

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