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Why is labor a variable cost?

Labor cost is variable cost because labor is paid for every single unit of product is made. For example if labor cost for making 1 unit is 10 then making 10 units will be 100 so as much as production level changing labor cost changing that;s why it is variable cost.


If the profit made by selling a pen for Rs.10 is as much as its cost what is the cost price of the pen?

If the selling price of the pen is Rs.10 and the profit is equal to the cost price, we can denote the cost price as Rs.x. The profit can be expressed as Selling Price - Cost Price, which gives us the equation: Rs.10 - Rs.x = Rs.x. Solving this, we get Rs.10 = 2Rs.x, leading to Rs.x = Rs.5. Therefore, the cost price of the pen is Rs.5.


If the profit made by the pen for Rs 10 is as much as its cost what is the cost price of pen?

If the profit made by the pen for Rs 10 is equal to its cost, then the profit is equal to the cost. Let's denote the cost price of the pen as x. Therefore, the profit made would also be x. According to the given condition, x = 10. So, the cost price of the pen is Rs 10.


What is the total cost if the marginal cost of producing the 9th unit is 10?

Total cost would be: (Average cost)*8 +10.


What is directly variable cost?

Directly variable cost means that which cost is directly related with the number of production of units of products. Example: For example if material amounting 10 is required to produce 1 product unit then total material amount of 100 will be required to produce 10 units of product in this case 10 is the variable cost per unit and 100 is the variable cost for 10 units of product.

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