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Andru [333]
3 years ago
14

During the past year, a firm produces 250 tablet devices at an average variable cost of $40 and at an average fixed cost of $10.

what were the firm's total costs during the year?
Business
1 answer:
Bumek [7]3 years ago
6 0

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

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