Corio Corporation Reports That at an Activity Level of 3,800

question 51

Essay

Corio Corporation reports that at an activity level of 3,800 units,its total variable cost is $221,464 and its total fixed cost is $94,848.
Required:
For the activity level of 3,900 units,compute: (a)the total variable cost; (b)the total fixed cost; (c)the total cost; (d)the average variable cost per unit; (e)the average fixed cost per unit;and (f)the average total cost per unit.Assume that this activity level is within the relevant range.

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Definitions:

Marginal Revenue

The supplementary earnings acquired from selling an extra unit of a product or service.

Competitive Market

A market structure where multiple firms are vying for consumers' business, thereby fostering innovation and fair pricing due to competition.

Total Revenue

The full amount of capital a business garners from the sale of goods or the rendering of services for a particular timeframe.

Total Cost

The complete cost of production that includes both fixed and variable costs.