Problem 6-19 (4)

Keeping all other factors left constant (Catteries Paribus); we allow an appreciation to the price to
incorporate ancillary cost to make the package frilled. Since the packaging cost moves in tandem with
production quota; we can accredit the increase cost as a variable cost.
So variable cost per unit = {(409500 / 19500) + 0.75 cent} = 21.75 per unit
We know that;

= QP {FC + VCU Q}

9750 = 30Q { 180000+21.75Q}

9750 =30Q- 180000 -21.75Q
9750=8.25Q -180000
8.25Q=180000+9750

Q=

.
Q= 23000

Now; lets sift through the answer whether it is correct or not 1950= 3023000 -180000 { 21.7523000}
1950=1950 (Proved)

FC= Fixed cost

VCU= Variable cost per unit
Q= Total number of quantity produced
= Profit

Given Values;

Profit= 9750
FC=180000
VCU=21.75
Q=?