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Homework answers / question archive / At 100 units of output, total cost is $12,000, total variable cost is $7000, and total fixed cost is $5000
At 100 units of output, total cost is $12,000, total variable cost is $7000, and total fixed cost is $5000. Average total cost is
A. 50
B. 70
C. 100
D.120
The answer is D. 120.
Total average cost = total cost / production volume = $12,000 / 100 = $120
This is $120 per unit