GATE CE 2014 Set 1 — Question 5
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Question
A foundry has a fixed daily cost of Rs 50,000 whenever it operates and a variable cost of Rs 800Q, where Q is the daily production in tonnes. What is the cost of production in Rs per tonne for a daily production of 100 tonnes?
Correct answer
1300 to 1300
Solution
Fixed daily cost = Rs 50,000
Variable cost = Rs 800Q, where is production in tonnes.
Total daily cost
For a daily production of tonnes:
Total cost
Cost of production per tonne = .
Variable cost = Rs 800Q, where is production in tonnes.
Total daily cost
For a daily production of tonnes:
Total cost
Cost of production per tonne = .
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