Day: December 22, 2022

Below is data on the costs of producing a given product.

• Output (units) of 0 means Total costs (£) of 40
• Output (units) of 1 means Total costs (£) of 80
• Output (units) of 2 means Total costs (£) of 110
• Output (units) of 3 means Total costs (£) of 150

Calculate the total variable costs of producing 3 units of output.

Select ONE answer:

1. £30
2. £40
3. £100
4. £110

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct

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