The Total Fixed Costs Are $10,000, and the Average Variable

question 196

Multiple Choice

The total fixed costs are $10,000, and the average variable cost per unit is $3. For a production volume of 10,000 units, the average cost per unit is

• A) $3.
• B) $1.
• C) $4.
• D) $3.3.
• E) $10

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Definitions:

Financially Attractive

A characteristic of investments or projects that are appealing due to their potential for positive financial returns.

Project B

A term that typically denotes a specific plan, task, or initiative identified by "B" to distinguish it from other projects.

Net Present Value

A financial metric that measures the profitability of an investment by calculating the difference between the present value of cash inflows and the present value of cash outflows.

Automated Equipment

Machinery that operates with minimal human intervention, often used to increase production efficiency and consistency.