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A manager can improve the economic value of an investment center by increasing sales.
Average Total Cost
The total cost of production divided by the quantity produced, incorporating both fixed and variable costs.
Average Fixed Cost
The constant costs of producing (which remain the same regardless of output volume) shared among the produced output units.
Average Variable Cost
Variable costs, which fluctuate based on production volume, divided by the total number of units produced.
Average Total Cost
The total cost of production (fixed plus variable costs) divided by the total quantity of output produced, representing the per-unit cost of production.
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