In your own words, describe the meaning of average cost

Average cost: Average cost is the cost of a single unit produced or purchased. It is given as:

Average cost=Total costTotal number of items produced or purchasedAverage cost=Total costTotal number of items produced or purchased

Last Month:

The total cost of the crate =$75=$75

Number of bottles per crate =8=8

Average cost:

=Total cost of crateTotal number of bottles in the crate=758=$9.375per bottle=Total cost of crateTotal number of bottles in the crate=758=$9.375per bottle

Now:

The total cost of the crate =$82=$82

Number of bottles per crate =10=10

Average cost:

=Total cost of crateTotal number of bottles in the crate=8210=$8.200per bottle=Total cost of crateTotal number of bottles in the crate=8210=$8.200per bottle

Conclusion:

The average cost of the crate from last month to now has been decreased from $9.37per bottle to $8.20per bottle$9.37per bottle to $8.20per bottle.

Average:

The average is the single number that is used to represent the complete data set. It is the ratio of the sum of all the numbers divided by the total number of observations in the data set. If the distribution of the data is symmetric then the average of the data set lies the center of the distribution.