A Company That Produces Baseball Caps Has Fixed Costs of $100,000,total

question 91

Multiple Choice

A company that produces baseball caps has fixed costs of $100,000,total variable costs of $40,000 for a production volume of 20,000 units.The average variable cost per unit is:

• A) $5.00.
• B) $2.50.
• C) $0.20.
• D) $0.40.
• E) $2.00.

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Definitions:

Histogram

A histogram is a graphical representation of the distribution of numerical data, using bars of different heights to show the frequency of data in consecutive, non-overlapping intervals.

Summary Statistics

Numerical values calculated from a dataset that describe its center, spread, and overall pattern, such as mean, median, and standard deviation.

Weekly Salaries

The amount of money or compensation given to employees based on a weekly timeframe for services rendered.

Boxplot

A graphical representation used in descriptive statistics that displays the distribution of data based on a five number summary: minimum, first quartile, median, third quartile, and maximum.