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Question 2 Alifulhubey company produced a single product called Killi and he provide you following 3 months cost data of the current year 2018. Month

Question 2

Alifulhubey company produced a single product called Killi and he provide you following 3 months cost data of the current year 2018.

Month

Production units

Total cost (MVR)

January

1,200

66,600

February

900

58,200

March

1,400

68,200

It is assumed that Alifulhubey company variable cost per unit is constant up to a production level of 2,000 units per month but a step up of MVR 6,000 in the monthly total fixed cost occurs when production reaches 1,100 units per month.

Calculate the total cost for a month of Alifulhubey company when 1,000 units are produced?

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