Omar's Car Wash Has Average Variable Costs of $4 and Average

question 217

Multiple Choice

Omar's Car Wash has average variable costs of $4 and average fixed costs of $5 when it produces 200 units of output (car washes) . The firm's total cost is

• A)$800.
• B)$1,000.
• C)$200.
• D)$1,800.

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Definitions:

SKUs

Stock Keeping Units, which are unique identifiers for each distinct product and service available for sale.

Single Criterion

In decision-making, this term refers to evaluating options based on one key factor or condition.

Balance Sheet

A financial statement that provides a snapshot of a company's financial condition at a specific moment in time, detailing assets, liabilities, and shareholders' equity.

Variable Expense

A cost that changes in proportion to the level of activity or volume of output in a business.