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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

Accounting

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

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The answer is D. 120.

Total average cost = total cost / production volume = $12,000 / 100 = $120

This is $120 per unit

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