Uriah owns a café, and they sell lasagna for a lunch time meal. It costs them $30 in raw materials with $25.20 in fixed costs and $4.80 in variable costs per pan to create their lasagna. Uriah used to get 24 pieces per pan, but they decided to reduce the size of the pieces and now can get 40 pieces per pan. They charge $6 per piece. What are their unit costs for the pan with 24 pieces and the pan with 40 pieces?Select answer from the options below$1.67 and $0.34$1.25 and $0.67$1.52 and $0.76$1.25 and $0.75
Question
Uriah owns a café, and they sell lasagna for a lunch time meal. It costs them 25.20 in fixed costs and 6 per piece. What are their unit costs for the pan with 24 pieces and the pan with 40 pieces?Select answer from the options below0.340.670.760.75
Solution 1
To calculate the unit cost, we need to add the fixed costs and variable costs, then divide by the number of units produced.
For the pan with 24 pieces: Total cost = Raw materials + Fixed costs + Variable costs Total cost = 25.20 + 60 Unit cost = Total cost / number of units Unit cost = 2.50
For the pan with 40 pieces: Total cost = Raw materials + Fixed costs + Variable costs Total cost = 25.20 + 60 Unit cost = Total cost / number of units Unit cost = 1.50
So, none of the options provided are correct. The unit costs for the pan with 24 pieces and the pan with 40 pieces are 1.50 respectively.
Solution 2
To calculate the unit cost, we need to add the fixed costs and variable costs, then divide by the number of units (pieces of lasagna).
For the pan with 24 pieces: The total cost is 25.20 (fixed costs) + 60. So, the unit cost is 2.50 per piece.
For the pan with 40 pieces: The total cost is the same, 60 / 40 = $1.50 per piece.
However, none of the provided options match these calculations. There might be a mistake in the question or the provided options.
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