Signature:
GENERAL INSTRUCTIONS
INSTRUCTIONS: ANSWER ALL THE QUESTIONS
1) You have been provided with the following information concerning the cost structure of MUL
Enterprise for the year 2020
Date:
Quantity
100
200
300
400
500
600
700
800
Total cost (FCFA)
100,000
150,000
200,000
250,000
300,000
400,000
450,000
500,000
The variable cost per unit is constant throughout the year. Fixed cost is constant, but will
increase in step once output exceeds 500units
Required:
e) Calculate the unit variable cost
f) Calculate the fixed cost before and after the step increase
g) Write out the cost equation before and after the step increase
h) Estimate the total cost for 490units of output and 920 units of output. (20marks)
w
duation of the groun exceeds the standard of 200