Umelcis
day.
C A company has fixed costs of F dollars per year and variable costs of c
dollars per unit produced. Find an expression for the total cost per unit
(total average cost) incurred by the company if it produces x units in one
year.
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Answer:
Explanation:let the fixed cost per year be F
The variable cost per unit be Vx
Where x = unit
Total cost = fixed cost + variable cost
Average total cost = ( fixed cost/x) + ( variable cost /x)
Average total cost = total cost/unit
= F/x+Vx/x
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