Question

Find the average variable cost for producing 42 sneakers. Round your answer to the nearest hundredth.

Answer 1

Answer:

The average variable cost for producing 42 sneakers is $2.98 per unit.

Step-by-step explanation:

We have, for 42 sneakers, the following costs:

• Fixed costs: $118
• Variable costs: $125

The total cost for 42 snickers is $243.

The average variable cost can be calculated dividing the total variable cost by the number of units.

This, for 42 snickers, is:

$\bar{vc}=\dfrac{VC}{q}=\dfrac{125}{42}\approx2.98$