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.
Most plastic plates are made from a material called polystyrene. According to Encyclopedia Britannica, polystyrene is a polymer of styrene, which is a compound of carbon and hydrogen. Polystyrene can be traced back to 1839 when apothecary Eduard Simon isolated an oily substance from storax, a type of natural resin.