Cindy's Car Wash Has Average Variable Costs of $2 and Average

question 641

Multiple Choice

Cindy's Car Wash has average variable costs of $2 and average fixed costs of $3 when it produces 100 units of output (car washes) . The firm's total cost is

• A)$100.
• B)$200.
• C)$300.
• D)$500.

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Definitions:

Period Cost

Overheads not associated with the production activities, expensed in the timeframe they arise, like sales, general, and administrative outlays.

President's Salary

The compensation awarded to the president of a company, reflecting the level of responsibility and the size and profitability of the company.

Product Cost

The total cost attributed to the production of goods or services, including direct materials, direct labor, and manufacturing overhead.

Carrying Cases

Containers or bags designed to protect and transport various items, often used for electronics, instruments, and equipment.