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Explain Variable costs.
Variable costs conversely, tend to vary directly along with the volume of output. Illustrations of variable cost are: -
* Direct production labour cost
* Direct Materials cost
* Direct Expenses.
David Upton is president of Upton Manufacturing, a producer of Go-Kart tires. Upton makes 1,000 tires per day with the following resources: Labor: 400 hours per day @ $12.50 per ho
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