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3.3 Revenues, costs and profits

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Question 12

Apex Hops Ltd is a craft brewery. In a typical month, the brewery produces and sells 800 kegs of beer. Its monthly operations incur the following costs:

  • Malt and hops: £12 £12\,£12 per keg
  • Brewery rent: £4,500 £4,500\,£4,500 per month
  • Delivery packaging: £6 £6\,£6 per keg
  • Salary of the Master Brewer: £3,000 £3,000\,£3,000 per month
  • Direct labor paid per keg: £8 £8\,£8 per keg
  • Business insurance: £1,500 £1,500\,£1,500 per month

What is the total variable cost for Apex Hops Ltd in a month where 800 kegs are produced and sold?

£26£26£26

£9,000£9,000£9,000

£20,800£20,800£20,800

£23,800£23,800£23,800

3.3 Revenues, costs and profits Questions

  1. A Level
  2. /Economics
  3. /3.3 Revenues, costs and profits