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If 500 Units of Supplies Are Consumed When Output Is

question 22

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If 500 units of supplies are consumed when output is at its high of 200, and 300 supply units are consumed during the low month when 150 units of output were produced, what will be the predicted supply expense if output is 175 and the average supply cost is $12 per unit using the high/low method?


Definitions:

Marginal Revenue

The extra revenue gained by the sale of an additional unit of a product or service.

Total Revenue

The total amount of income generated by the sale of goods or services by a company.

Average Cost

The total cost of production divided by the quantity of output produced, representing the cost per unit of output.

Marginal Cost

The rise in overall expenses incurred from manufacturing an extra unit of a good or service.

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