Question

the total cost of producing 10
units of handmade soaps is
rupees 400 of which the total
fixed cost rupees hundred and
total variable cost is rupees 300
calculate the average fixed cost​

Answer 1

Explanation:

fixed p.u is based on Normal capacity and actual capacity

1) if actual capacity is less than the normal capacity ,then fixed cost per unit equal to total fixed cost / Normal capacity.

2) otherwise ,fixed cost p. u equal to total fixed cost/ actual cost.

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