Asked by stefan quintana on Jun 18, 2024
Verified
Mr.Dent Carr's total costs are 2s2 45s 30.If he repairs 15 cars, his average variable costs will be
A) $77.
B) $75.
C) $150.
D) $105.
E) $52.50.
Average Variable Costs
The total variable costs of production divided by the quantity of output produced, representing the cost of producing an additional unit.
Total Costs
The sum of all costs incurred in the production of goods or services, including both fixed and variable costs.
Cars
Motor vehicles with four wheels designed primarily for passenger transportation and commonly propelled by an internal combustion engine.
- Calculate the incremental and mean costs based on designated cost functions.
- Investigate the role of fixed expenses in shaping production strategies and conducting break-even evaluations.
Verified Answer
KC
Karen CavadiaJun 21, 2024
Final Answer :
B
Explanation :
To find the average variable costs, we need to divide the total variable costs by the number of cars repaired.
Total variable costs = 45s + 30 = 48s
Number of cars repaired = 15
Average variable costs = (48s) / 15 = 3.2s
Converting to decimal: $3.2 = $3.20
Therefore, the average variable costs will be $75.
Total variable costs = 45s + 30 = 48s
Number of cars repaired = 15
Average variable costs = (48s) / 15 = 3.2s
Converting to decimal: $3.2 = $3.20
Therefore, the average variable costs will be $75.
Learning Objectives
- Calculate the incremental and mean costs based on designated cost functions.
- Investigate the role of fixed expenses in shaping production strategies and conducting break-even evaluations.