Exhibit 14-3 -Refer to Exhibit 14-3. Calculate the Average Tax Rate of Tax

question 29

Essay

Exhibit 14-3
-Refer to Exhibit 14-3. Calculate the average tax rate of an individual whose taxable income is $65,000 and who has total deductions and exemptions of $10,000.

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Definitions:

AVC

Average Variable Cost is the total variable costs divided by the quantity of output produced.

AFC

Average Fixed Cost, the fixed cost per unit of output, calculated by dividing total fixed costs by the quantity produced.

Average Total Cost

The total cost of production (fixed and variable costs combined) divided by the total quantity of output produced.

Average Fixed Cost

The fixed cost per unit produced, calculated by dividing total fixed costs by the quantity of output produced.