The total costs = Total variable costs + Total fixed costs
Given,
Average variable costs = $ 40
Average fixed cost = $ 10
Tablets produced during the year = 250
Total variable cost = Average variable costs × Tablets produced during the year
Total variable cost = 250 tablets × $ 40 = 10,000
Total fixed cost = Average fixed costs × Tablets produced during the year
Total fixed cost = 250 tablets × $ 10 = $ 2,500
Total costs = Total variable cost + Total fixed cost
Total costs = $ 10,000 + $ 2,500 = $ 12,500
