A cutlery manufacturer producer produces 200 units of output at a total cost of $1,500. if total variable costs are $500, the av erage variable cost (per unit) is ______. $2.5 $3.00 $2.00 $1.00 $7.50
2 answers:
Given that production cost of 200 units is $1500 with a variable cost of $500, then the average variable cost per unit will be: (variable cost)/(number of units) =500/200 =$2.5 dollars per unit Answer: A] $2.5
Since there are 200 units and variable costs are $500, we do a simple division, like this:
500/200 = 2.5.
So the answer is: 2.5
Hope this helped! c:
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