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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

Accounting

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.

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The average total cost is $120, and the answer is D

Explanation:

  • The total cost is $12,000
  • The total units is 100

Averagetotalcost=TotalCostTotalUnitsAveragetotalcost=TotalCostTotalUnits

Averagetotalcost=12,000100Averagetotalcost=12,000100

Averagetotalcost=120