Based on the information in the Williams Lake and District Pool feasibility study, I expect the average cost per swim to be <u>B. decreasing</u>.
<h3>What is the average cost?</h3>
The average cost is the unit cost recovery amount because it divides the total cost (fixed and variable) by the total units produced.
The average cost decreases when the fixed cost significantly exceeds the variable cost.
The annual capacity of swimming = 174,000 swims
85% of annual capacity = 147,900 (
Current Capacity Proposed Capacity
Total number of swims 132,200 147,900
Total user revenue $305,443 $341,649 (147,900 x $2.31)
Average revenue per swim $2.31 $2.31
Average cost per swim $7.53 $7.53
Total cost $995,280 $1,113,687 (147,900 c $7.53
Recovery rate 31% 31%
Thus, I do not expect the average cost per swim to increase or be U-shaped with increased capacity but to be <u>Option B</u>.
Learn more about average cost behaviors at brainly.com/question/25799822
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