Ted's Sleds Produces Sleds at an Average Variable Cost Per

question 220

Multiple Choice

Ted's Sleds produces sleds at an average variable cost per unit of $39.18 when production quantity is 1,250 units. When production increases to 1,251 units the average variable cost declines to $39.16. What is the minimal price that Ted's Sleds can charge for the 1,251^stsled without affecting net profits?

• A) $13.89
• B) $14.16
• C) $14.21
• D) $14.37
• E) $14.44

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