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.
The chemical composition of plastics is different depending on what type of plastic your dealing with. But for the most part the raw material of plastic is hydrocarbons found naturally in oil. Take cellulose acetate--a very popular polymer, used mostly in thin films. It's made from cotton.Some rubbers are made from the sap of a tree.ut for the most part the raw material of plastic is hydrocarbons found naturally in oil. Take cellulose acetate--a very popular polymer, used mostly in thin films. It's made from cotton. Some rubbers are made from the sap of a tree.