Table 6-B -Refer to Table 6-B

question 88

Multiple Choice

Table 6-B
$$\begin{array} { | c | c | c | c | } \hline \text { Units af Output } & \begin{array} { c } \text { Variable Cast } \\\text { (dallars) }\end{array} & \text { Tatal Cast (dollars) } & \begin{array} { c } \text { Marginal Cast } \\\text { (dallars) }\end{array} \\\hline0 & 0& 40 & \\\hline 1 & 30 & 70 & 30 \\\hline 2 & 50 & 90 & 20 \\\hline 3 & 60 & 100 & 10 \\\hline 4 & 80 & 120 & 20 \\\hline 5 & 105 & 145 & 25 \\\hline 6 & 150 & 190 & 45 \\\hline\end{array}$$
-Refer to Table 6-B.How much are average fixed costs (in dollars) at 4 units of output?

• A)10
• B)20
• C)30
• D)40
• E)There is insufficient information to determine the average fixed cost at that production level.

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Definitions:

Calculate

The act of determining a value or amount by mathematical means, often to analyze financial or statistical data.

Borrowed

The act of receiving something, especially money, with the obligation to return it or its equivalent.

Retained Earnings

The portion of a company's profit that is held or retained and saved for future use, investment, or to pay debt, rather than being paid out as dividends to shareholders.

MCC

Stands for Marginal Cost of Capital, which is the cost of obtaining one additional dollar of new capital, used in financial analysis to determine the optimal capital structure.