Tag: Analyzing the Cost Structure of a Business Producing 3 Million Units per Month

Individual Problems 3-7
1. A business incurs the following costs:
• Labor: $105/unit
• Materials: $20/unit
• Rent: $250,000/month
Assume the firm produces 3 million units per month.
The total variable cost, per month, is million.
The total fixed cost, per month, is million.
The total cost is million.