Juan finished the special report for the vice president of marketing. He spent many extra hours compiling this report and knows
1 answer:
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Answer:
the correct answer is option (a) 2.00
Explanation:
Given:
Total units produced = 8,000
variable cost incurred = $24,000
Total cost incurred = $40,000
Now,
Total cost = Fixed cost + Variable cost
or
$40,000 = Fixed cost + $24,000
Or
Fixed cost = $40,000 - $24,000 = $16,000
Therefore,
The average fixed cost for 8000 units =
or
The average fixed cost =
or
The average fixed cost = $2
hence,
the correct answer is option (a) 2.00