Question

A certain firm produces and sells staplers. Last year, it produced 7,000 staplers and sold each stapler for $6. In producing the 7,000 staplers, it incurred variable costs of $28,000 and a total cost of $45,000. Refer to Scenario 13-5. In producing the 7,000 staplers, "the firm's average total cost was"

Answer 1

Answer:

$6.43

Explanation:

The computation of the average total cost is shown below:

= Total cost  ÷ Quantity produced

= $45,0000 ÷ 7,000 staplers

= $6.43

By dividing the total cost i.e $45,000 from the quantity produced i.e 7,000 staplers we can get the average total cost and the same is to be shown above.

And, the rest of the items should be ignored as it is not relevant to the current given situation