A Firm Has the Capacity to Produce 3,100 Units Per

question 73

Multiple Choice

A firm has the capacity to produce 3,100 units per week. At 80% capacity, the average total cost per unit is $12.50 and the average variable cost per unit is $7.50. What is the total fixed cost per week, assuming the firm is still operating within its relevant range?

• A) $12,400
• B) $19,375
• C) $23,200
• D) $15,500