A Factory Produces Two Million Hand-Held Computers a Year

question 11

Multiple Choice

A factory produces two million hand-held computers a year. The annual fixed costs of the factory are and the marginal cost of each computer is $7. What is the average cost per unit?

• A)$12.25
• B)$16.25
• C)$17.30
• D)$18.75
• E)$19.50

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Definitions:

Scheduled Payment

Regularly planned payments towards a debt or obligation, often part of a loan or mortgage repayment plan.

Equivalent Payment

A payment or series of payments adjusted to represent a common value under certain specified conditions, often used in comparing different financial plans.

Interest Rate

The percentage of a sum of money charged for its use, often expressed on an annual basis.

Single Payment

A one-time transfer of money to settle a liability or make a purchase.