Sold merchandise on credit to Rondo Distributors, for $1,200, terms n/30. The cost of the merchandise was $720. 8 Purchased merc
1 answer:
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Answer:
Total Cost = $300
Average Total Cost = $30
correct option is a.) Total cost is $300
Explanation:
given data
produces output = 10 units
Marginal Cost = $30
Average Variable Cost = $25
Average Fixed Cost = $5
solution
first we get here total cost that is
Total Cost = Total Variable Cost + Total Fixed Cost .................................1
so here Total Variable Cost = Average Variable Cost × Output
Total Variable Cost = $25 × 10
Total Variable Cost = $250
and total fix cost is = Average Fixed Cost × Output
total fix cost = $5 × 10 =
total fix cost = $50
so Total Cost is here
Total Cost = $250 + $50
Total Cost = $300
A) is correct
and
Average Total Cost will be
Average Total Cost = ...................2
Average Total Cost = = $30
Average Total Cost = $30