Asked by Caleigh Noelle on Jul 30, 2024
Verified
(Figure and Table: Variable,Fixed,and Total Costs) Use Figure and Table: Variable,Fixed,and Total Costs.When 96 bushels of wheat is produced,the average fixed cost is _____,average variable cost is _____,and average total cost is _____.
A) $7.84;$11.76;$19.60
B) $133.33;$200.00;$333.33
C) $4.17;$16.67;$20.83
D) $5.33;$13.33;$18.67
Average Fixed Cost
The constant expenses associated with production, which remain unaffected by the amount of goods produced, divided by the number of items made.
Average Variable Cost
The total variable cost of production divided by the quantity of output produced.
Average Total Cost
The total cost of production divided by the quantity of output produced, illustrating the average cost per unit of output.
- Derive the average fixed, average variable, and cumulative total costs using precise information.
Verified Answer
ZK
Zybrea KnightAug 02, 2024
Final Answer :
C
Explanation :
From the table, we can find that when 96 bushels of wheat is produced:
- Fixed cost = $400 / 96 bushels = $4.17 per bushel
- Variable cost = $1600 / 96 bushels = $16.67 per bushel
- Total cost = fixed cost + variable cost = $4.17 + $16.67 = $20.83 per bushel
Therefore, the correct answer is C.
- Fixed cost = $400 / 96 bushels = $4.17 per bushel
- Variable cost = $1600 / 96 bushels = $16.67 per bushel
- Total cost = fixed cost + variable cost = $4.17 + $16.67 = $20.83 per bushel
Therefore, the correct answer is C.
Learning Objectives
- Derive the average fixed, average variable, and cumulative total costs using precise information.