Respuesta :
The fixed cost of producing surfboards is $5,000 per month. The total variable cost of producing 15 surfboards is $36,000 per month. The average total cost of producing 15 surfboards in a month is (B)$2,733.33
What is Average Cost?
Average cost is the total amount of all production costs divided by the quantity of output produced. This number is also known as average total cost or unit cost.
Average cost includes fixed costs, like those necessary for production, that remain the same no matter the output. Average cost also includes variable costs. which may increase or decrease according to output.
So, according the question,
Average Fixed Cost = $5,000
Average Variable Cost = $36,000
Average Total Cost = Average Fixed Cost + Average Variable Cost
= $5,000 + $36,000
= $41,000
Average Total Cost =Total Cost of Production/Quantity of Unit Produce
= $41,000 / 15
= $2,733.33
Hence, we can conclude that the Average Cost of producing 15 surfboards in a month is $2,733.33
Your question is incomplete, but most probably your full question was:
The fixed cost of producing surfboards is $5,000 per month. The variable cost for producing 15 surfboards is $36,000 per month. The average cost of producing 15 surfboards in a month is ______.
A)$333.33
B)$2,733.33
C)$2,400.00
D)$41,000.00
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