Asked by Chris Blackston on Jun 20, 2024
Verified
The Cacti Company manufactures and sells succulent gardens.The gardens have an expense equation of E = 4.7q + 34,000.The average cost per garden is $12.50 when 2,500 are produced.
Expense Equation
The sum of the fixed and variable expenses.
Average Cost
A method to determine the cost of goods sold or inventory valuation where all costs of acquisition are averaged over the total units available for sale.
- Master the technique for assessing the costs associated with producing goods.
Verified Answer
PC
Pragya ChaturvediJun 23, 2024
Final Answer :
False
Explanation :
Average cost per garden (C) = Total cost (E) / Quantity produced (q)
$12.50 = (4.7 * 2,500 + $34,000) / 2,500
$12.50 = $47.80
Therefore, the statement is false as the average cost per garden is not $12.50 when 2,500 are produced.
$12.50 = (4.7 * 2,500 + $34,000) / 2,500
$12.50 = $47.80
Therefore, the statement is false as the average cost per garden is not $12.50 when 2,500 are produced.
Learning Objectives
- Master the technique for assessing the costs associated with producing goods.