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.
Plastic typically is made from a crude oil derivative and therefore depends on Earth's finite oil supplies. But plant material can also yield plastics if it is burned, producing a mixture of hydrogen and carbon monoxide known as synthesis gas. In the presence of a catalyst, typically iron-based, the so-called syngas yields lower olefins, which form plastic when they're chemically strung together.