-Refer to Figure 8

question 51

Multiple Choice

-Refer to Figure 8.4.What is the average fixed cost of producing 80 units of output?

• A) $100
• B) $280
• C) $4.75
• D) $380

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Definitions:

Cost of Goods Sold

The direct financial outlays related to producing the products that a company sells.

Purchase Returns

Goods returned to the supplier due to defects, damage, or dissatisfaction, resulting in a refund or credit to the buyer.

Freight-In

Costs associated with the shipping of raw materials or goods into a production facility or warehouse, typically included in the inventory cost.

Inventory Decreased

A situation where the quantity of goods available for sale by a business is reduced, typically because of sales or use.