Question

A manufacturing plant that assembles television sets has variable output volume from 200 sets to 350 sets a day. The building for both manufacturing and warehousing has an area of 80,000 square feet. It employs about 250 people. It produces all of the components that go into the assembly. An example for variable cost in this plant is ___________________.

Answer 1

Answer:

Labor cost

Explanation:

Variable costs are the costs that can vary or depends on the output level of production.

Here,

In the given case the variable cost for the plant will be the labor cost.

The number of labor required for the production depends on the level of output volume.

For higher number of output more labor will be required and vice-versa.

Thus,

the labor cost will alter accordingly.