When Super Stuff Corporation Produces 5,000 Units, Total Costs Equal

question 62

Multiple Choice

When Super Stuff Corporation produces 5,000 units, total costs equal $150,000 and total variable costs equal $75,000. At this level of output, what is Super Stuff's average fixed cost?

• A) $75,000
• B) $30
• C) $225,000
• D) $15

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Definitions:

Transformation Process

The method by which inputs (such as raw materials, information, or labor) are converted into outputs (products or services) by an organization.

Continuous Manufacturing Organizations

Companies that use continuously running assembly lines, creating products with many similar characteristics.