Answer:
The correct option is a.
Step-by-step explanation:
The average cost function is
Where x is the number of calendars produced.
The average cost formula is
Therefore the total cost is defined b the function
Here 600 is the initial cost and the cost each unit is 2.
Initial cost is the fixed cost which occurs at zero level of productivity.
The company spends $600 on a new computer and printer before beginning the project. The option (a) is correct.