The total fixed cost is $150 and the total cost is $300.
What is total fixed cost?
Total fixed cost means the fixed per unit multiplied by the number of units at that level of production, from the table average fixed cost, in other words, fixed cost per unit is $25, in essence, total fixed cost is computed thus:
total fixed cost=average fixed cost*units
average fixed cost=$25
units=6
total fixed cost=$25*6
total fixed cost=$150
The fact the fixed cost is $150 means that the option which has total fixed cost $150 and total cost as $300 is the most appropriate , however, we would determine below how $300 of total cost was derived.
What is total cost?
Total cost is the sum of the total fixed cost plus the total variable cost
Total cost=total fixed cost+ total variable cost
total variable cost=average variable cost*units
average variable cost( from the cost data)=$25
total variable cost=$25*6
total variable cost=$150
total cost=$150+$150
total cost=$300
In essence, the correct option is the third one, where total fixed cost is $150 and the total cost is $300
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