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Nat2105 [25]
3 years ago
10

The average variable costs of a company are equal to $20 per unit produced at its current level of output in the short run. Its

average fixed costs are equal to $30 per unit produced. The total costs at this output level are equal to $2,500.
Required:
a. What is the company’s current output level?
b. What are the total variable costs at this output level?
c. What are the total fixed costs?
Business
1 answer:
IRINA_888 [86]3 years ago
8 0

Answer:

Results are below.

Explanation:

<u>First, we need to calculate the number of units produced:</u>

Number of units= total cost/ average unitary cost

Number of units= 2,500 / (20 + 30)

Number of units= 50 units

<u>Now, the total variable cost:</u>

Total variable cost= 50*20

Total variable cost= $1,000

<u>Finally, the fixed costs:</u>

Fixed cost= 50*30

Fixed cost= $1,500

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