-This Month, the Local Widget Factory Produced 100 Widgets

question 137

Essay

-This month, the local widget factory produced 100 widgets. The total variable cost of production was $500 and the average total cost of production was $8.
a) What is the total cost?
b) What is the total fixed cost?
c) What is the average fixed cost?
d) What is the average variable cost?

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Definitions:

Base Number

A reference point or initial value used in calculations to compare other numbers or for indexing purposes.

Fixed Asset Sales

The disposal of long-term assets owned by a company, such as property, plant, and equipment, usually due to obsolescence, necessity, or acquiring funds.

Financial Ratios

Quantitative measures derived from financial statement analysis used by investors and analysts to assess a company's financial health, performance, and viability.

S&P Category

A classification system used by Standard & Poor's to categorize and evaluate stocks or other securities based on their sector or characteristics.