In the Above Figure,what Is the AVERAGE Variable Cost of Producing

question 85

Multiple Choice

In the above figure,what is the AVERAGE variable cost of producing 5 units of output?

• A)$12
• B)$20
• C)$40
• D)$60
• E)$80

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Definitions:

Fixed Overhead

Recurring operating expenses that remain relatively constant regardless of the level of production or business activity.

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Inventory

Products and items that a company keeps with the final intention of selling or further processing.

Special Order

A unique, one-time order or request from a customer, often requiring customized production or handling outside of regular operations.