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.
In the case of plastic bags, the repeating units are ethylene, or ethene. When ethylene molecules are polymerized to form polyethylene, they form long chains of carbon atoms in which each carbon also is bonded to two hydrogen atoms. Many kinds of polyethylene can be made from ethylene. Plastic bags typically are made from one of three basic types: high-density polyethylene (HDPE), low-density polyethylene (LDPE), or linear low-density polyethylene (LLDPE). Those thick, glossy shopping bags from the mall are LLDPE, while grocery bags are HDPE, and garment bags from the dry cleaner are LDPE.