Suppose That a New Alloy Is Invented Which Uses Copper

question 25

Multiple Choice

suppose that a new alloy is invented which uses copper and zinc in fixed proportions where 1 unit of output requires 3 units of copper and 3 units of zinc for each unit of alloy produced.If no other inputs are needed, the price of copper is $4, and the price of zinc is $5, what is the average cost per unit when 4,000 units of the alloy are produced?

• A)$1.33
• B)$14.17
• C)$1,333.33
• D)$27
• E)$14,166.67

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Definitions:

Revenue Journal

A specialized accounting journal used to record all incoming revenues and sales transactions of a company.

Cash Receipts Journal

A dedicated accounting journal used to record all cash inflows or money received by a business.

General Journal

A chronological record of a company's financial transactions.

Revenue Journal

A revenue journal is a ledger used to record a company’s sales transactions, typically detailing the sale of goods or services on credit.