The fixed component in this example is $3,000 per month. The variable cost component is $10 per unit of output. Hence, at a production level of 500 units, the total electric cost is $8,000 [$3,000 + ($10 x 500)].
Plastics are derived from organic products. The materials used in the production of plastics are natural products such as cellulose, coal, natural gas, salt and, of course, crude oil. Crude oil is a complex mixture of thousands of compounds. To become useful, it must be processed.he materials used in the production of plastics are natural products such as cellulose, coal, natural gas, salt and, of course, crude oil. Crude oil is a complex mixture of thousands of compounds.
Number 2. Number 2 plastics are made out of high-density polyethylene (HDPE) and are very versatile. These plastics are stiff and have good barrier properties. They are useful in the packaging of short shelf-life products like milk, and hard plastic products such as those used in plumbing.