Suppose That for 20 Bicycles,the Total Fixed Cost Is $100

question 61

Multiple Choice

Suppose that for 20 bicycles,the total fixed cost is $100 and total variable cost is $300.Then the average fixed cost and average variable cost are:

• A)$5 and $10 respectively.
• B)$5 and $15 respectively.
• C)$10 and $15 respectively.
• D)$15 and $10 respectively.
• E)$10 and $5 respectively.

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Definitions:

Asset

Resources owned or controlled by a business that are expected to provide future economic benefits, including tangible and intangible items.

Liability

An economic obligation or debt owed by a company to others, typically other businesses or employees.

Contra-Asset

An account on a company's balance sheet that reduces the total value of assets, often used for accumulated depreciation or allowances for bad debts.

Perpetual Inventory

An inventory management system that records the sale or purchase of inventory immediately through the use of computerized systems.