Question

If fixed cost is 480, variable cost is 120 and the output is 60 units, find the average cost?

Answer 1

The average cost of production in this case is 13.

Explanation:

• Average cost or average cost of production is calculated by dividing the total cost or total cost of production by the number of units produced by any firm or company in a specific period of time.
• Now,the total cost of production is calculated by adding up the total fixed cost and total variable cost of production.Here the total fixed cost and total variable cost are given as 480 and 120 respectively.The number of units produced is 60 units.Hence,the total cost of production=$(480+120)=700$    
• Therefore,based on the mathematical formula to calculate average cost of production,the average cost in this case=$\frac{780}{6} =13$.Hence,the average cost of production in this case is 13.

Answer 2

Answer:

UPAR PURA EXPLAINED HAI AB HM KYA KRE....xD xD

btw ans is.....13

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