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Nikolay [14]
3 years ago
13

If average fixed costs equal $60 and average total costs equal $120 when output is 100, the total variable cost must be:

Business
1 answer:
nadezda [96]3 years ago
5 0

The average variable cost per unit is 60 cents

Total costs= fixed costs + (variable costs x number of units)

Solve where x= variable cost per unit

$120= $60 + $100x    Subtract 60 from both sides

60 = 100x                     Divide by 100

x = $0.60

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