According to the Table Below,what Is the Average Variable Cost

question 26

Multiple Choice

According to the table below,what is the average variable cost of producing 50 units of output?
$$\begin{array} { | l | l | l |} \hline \mathbf { Q } & \mathbf { F C } & \mathbf { V C } \\\hline 0 & 1,000 & 0 \\\hline 20 & 1,000 & 350 \\\hline 50 & 1,000 & 700 \\\hline 90 & 1,000 & 1,050 \\\hline 125 & 1,000 & 1,400 \\\hline 145 & 1,000 & 1,750 \\\hline 160 & 1,000 & 2,100 \\\hline\end{array}$$

• A) 21
• B) 34
• C) 14
• D) 20

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Definitions:

Managerial Accounting

The practice of analyzing, interpreting, and communicating financial information to managers for the purpose of achieving business goals.

Future Activities

Planned actions or tasks that are intended to be executed in the future time.

Actual To Planned

Comparison between the actual performance or results and the planned or budgeted figures.

Just-In-Time Manufacturing

A production strategy that aims to reduce in-process inventory and associated carrying costs by producing goods only as they are needed in the production process.