If Fixed Costs Are $10,000 and Variable Costs Are Constant

question 25

Multiple Choice

If fixed costs are $10,000 and variable costs are constant at $1.00 per unit over the relevant range of output,what will the average total cost be when 10,000 units are produced?

• A)$0.20
• B)$2.00
• C)$5.00
• D)$1.00

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Definitions:

Buyout Price

The agreed-upon amount required to purchase someone's interest in a property, business, or contractual obligation, usually predetermined in a contractual agreement.

Nonwrongfully Dissociated

Pertaining to partners or members leaving an entity like a partnership or limited liability company under conditions that do not violate the agreement or law.

Extraordinary Decision

A decision that goes beyond normal or routine operations, often requiring a higher level of authority or consent within an organization.

Unanimous Partner

This term likely relates to the requirement in some partnership agreements that all partners must agree on certain decisions, although it is not a standard legal term.