Answer:
b) 240
Explanation:
The fixed costs to the production of the tractors are $600.000, independently if the company makes 1 or none tractor, the company must spend $600.000 variable cost are attached to the number of tractors that the company will make. In this case the company will produce $15.000 and the variable cost is $200, its a reason why you must multiply those numbers. Excersise:
Total cost of produce n tractor = fixed costs+( number of tractors * variable cost)
where n = 15.000
Total cost of produce n tractor =$600.000+(15.000*$200)
Total cost of produce n tractor =$600.000+ ($3.000.000)
Total cost of produce 15.000 tractors = 3.600.000
Now that you have the total cost, you have to divide in the number of tractor to fin the average cost per quantity:
Average cost= (Total cost of 15.000 tractors/number of tractors)
Average cost= (3.600.000/15.000)= $240
