When the total fixed cost of producing 100 units is rupees 30 and the average variable cost rupees 3, total cost is : ( choose the correct alternative )
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300 rupees I think
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Given- total fixed cost - Rs. 30
Number of units - 100
Average variable cost - Rs. 3
Find - Total cost.
The formula to calculate the total cost is as follows-
Total cost = total fixed cost + total variable cost.
Average variable cost of 100 units is Rs. 3
Total variable cost is 3*100
Total variable cost = Rs. 300
Total cost = total variable cost + total average cost
Total cost = 30+300
Total cost = Rs. 330
Answer - Total cost - Rs. 30
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