The average fixed cost per unit at an activity level of 5,200 units is $6.00.
<h3>What is the average fixed cost?</h3>
The average fixed cost (AFC) is fixed cost that does not change with the change in the number of goods and services produced by a company. To put it in a nutshell, average fixed cost (AFC) is the fixed cost per unit and is calculated by dividing the total fixed cost by output level.
Since no cost is fixed for a long time, average fixed cost is only for a short run. When units of production increase, the average fixed cost per unit decreases. Similarly, when the business produces less units, average cost increases per unit.
However, only one unit, mostly capital, is fixed. Examples of average fixed cost are the salaries of permanent employees, mortgage payment on machinery and plant, rent, more.
Average Fixed Cost Formula:
AFC = Total fixed cost/Output (Q)
To know more about plant visit: brainly.com/question/22167412
#SPJ4
