Question

calculating unit cost and total cost for producing 800 units of plywood

Answer 1

To calculate the unit cost and total cost for producing 800 units of plywood, you'll need to know the following information:

1. **Fixed Costs**: These are costs that do not change with the level of production (e.g., rent, salaries of permanent staff, etc.).

2. **Variable Costs**: These are costs that vary directly with the level of production (e.g., raw materials, direct labor costs, etc.).

3. **Total Production Cost**: This is the sum of fixed and variable costs for producing the specified number of units.

### Steps to Calculate Unit Cost and Total Cost:

1. **Calculate Total Variable Costs**:
\[
\text{Total Variable Costs} = \text{Variable Cost per Unit} \times \text{Number of Units}
\]

2. **Calculate Total Costs**:
\[
\text{Total Costs} = \text{Total Fixed Costs} + \text{Total Variable Costs}
\]

3. **Calculate Unit Cost**:
\[
\text{Unit Cost} = \frac{\text{Total Costs}}{\text{Number of Units}}
\]

### Example Calculation

Assuming:
- **Fixed Costs** = $5,000
- **Variable Cost per Unit** = $10

1. **Calculate Total Variable Costs**:
\[
\text{Total Variable Costs} = 10 \text{ (Variable Cost per Unit)} \times 800 \text{ (Number of Units)} = 8,000
\]

2. **Calculate Total Costs**:
\[
\text{Total Costs} = 5,000 \text{ (Fixed Costs)} + 8,000 \text{ (Total Variable Costs)} = 13,000
\]

3. **Calculate Unit Cost**:
\[
\text{Unit Cost} = \frac{13,000}{800} = 16.25
\]

### Summary

- **Total Cost for Producing 800 Units**: $13,000
- **Unit Cost**: $16.25

Please provide specific fixed and variable costs if you require a tailored calculation!