Question
A company produces 3 types of items A, B, and C. The
cost of producing A is ₹200, B is ₹300, and C is ₹500. If the company produces 400 units of A, 300 units of B, and 100 units of C in a month, find the average cost of producing an item.Solution
Total cost of producing A = ₹200 × 400 = ₹80,000. Total cost of producing B = ₹300 × 300 = ₹90,000. Total cost of producing C = ₹500 × 100 = ₹50,000. Total cost = ₹80,000 + ₹90,000 + ₹50,000 = ₹2,20,000. Total items produced = 400 + 300 + 100 = 800. Average cost = Total cost / Total items = 2,20,000 / 800 = ₹275.
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