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

question 79

Multiple Choice

According to the table below,what is the average total cost of producing 160 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) 12.98
• B) 16.31
• C) 22.04
• D) 19.38

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Definitions:

Shipped

Refers to goods that have been transported from one location to another, usually through the use of a carrier or logistical service.

Specific Goods

Goods that are identified and agreed upon at the time a contract of sale is made.

F.O.B. New York

A shipping term indicating that the seller must deliver goods on board a vessel at the port of New York, with the buyer being responsible for freight and insurance.

Risk of Loss

The exposure to potential financial loss in a transaction, often determining who bears the responsibility if goods are damaged or lost.