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Homework answers / question archive / At 100 units of output, the total cost is $12,000, the total variable cost is $7,000, and the total fixed cost is $5,000
At 100 units of output, the total cost is $12,000, the total variable cost is $7,000, and the total fixed cost is $5,000. Average total cost is:
a. $50.
b. $70.
c. $100.
d. $120.
The average total cost is $120, and the answer is D
Explanation:
Averagetotalcost=TotalCostTotalUnitsAveragetotalcost=TotalCostTotalUnits
Averagetotalcost=12,000100Averagetotalcost=12,000100
Averagetotalcost=120