If Fixed Costs Are $200,000 and Variable Costs Are $30

question 218

Multiple Choice

If fixed costs are $200,000 and variable costs are $30 per unit over the relevant range of output, when 10,000 units are produced, the average total cost will be

• A) $20.
• B) $30.
• C) $50.
• D) $70.

---

Definitions:

Internal Environment

The conditions, entities, events, and factors within an organization that influence its activities and choices, including its culture, employees, and management.

Enlarging Office

Refers to the process of expanding the physical or organizational capacity of an office environment to accommodate more staff or enhance operational efficiency.

Work-Related Issues

Problems or challenges encountered in the workplace that affect the performance, environment, or relationships among employees.

Company Performance

An assessment of a business's overall achievements, financial health, and operational efficiency over a specified period.