If Fixed Cost Is $200,000 and Variable Cost Is $30

question 97

Multiple Choice

If fixed cost is $200,000 and variable cost is $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.

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Definitions:

ADR

Alternative Dispute Resolution; a process to resolve disputes outside of the judicial process, including mediation and arbitration.

Adjudication

The legal process of resolving a dispute or deciding a case by a court or other judicial entity.

Precludes

Prevents something from happening or someone from doing something; acts as a barrier.

Rules of Precedent

Legal principles that dictate that courts should follow the rulings of previous cases in similar circumstances to ensure consistency in the law.