Answer / shashi pathak

in a manufacturing company suppose 1 kg plastic require for
producing 1 bucket..company wants to produce 100 bucket then
total raw material require is 100 kg plastic. and, assume 1 kg
plastic costing 10 it is fixed bt when for 100 bucket it will
be 100*10=1000..here it is variable.

and same since cost of raw material is variable bt in case of
one unit it is fixed.

The following figures have been extracted from Katerina’s books of account for the month of April 2010: $ Sales 460 000 Total variable costs 299 000 Total fixed costs 90 000 Profit 71 000 (d) Calculate the sales in dollars necessary to make a profit of $100 000.

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