Asked by Loretta Foshee on May 18, 2024
Verified
Refer to Table 13-7. What is the value of D?
A) $25
B) $50
C) $100
D) $200
Average Fixed Cost
Costs of production that are stable (not varying with output amount) allocated across the number of units produced.
Fixed Cost
describes expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.
Variable Cost
Costs that change in proportion to the level of activity or volume of production in a business.
- Assess the influence of material expenses on the total cost of production.
Verified Answer
DG
Diksha gangwarMay 21, 2024
Final Answer :
B
Explanation :
The value of D, which represents the Average Fixed Cost (AFC) for one helicopter ride, is calculated by dividing the total fixed cost by the number of rides. Given that the fixed cost is $50 and there is 1 ride, $50 / 1 = $50.
Learning Objectives
- Assess the influence of material expenses on the total cost of production.