Asked by Blair Leclair on Jul 02, 2024
Verified
What is the average cost per unit if the firm produces 5 units?
A) $196
B) $980
C) $182
D) $910
Producing Units
Entities within an organization responsible for the creation of products or services.
- Determine and recognize the relevance of average total expenditures, average fluctuating expenses, and steadfast costs within the production operation.
Verified Answer
KS
Karleigh Sternberg4 days ago
Final Answer :
A
Explanation :
The average cost per unit is calculated by dividing the total cost by the number of units produced. Without specific details on the total cost or the costs involved in production, the correct answer cannot be determined from the information provided. However, if this was a theoretical or example question where $980 was the total cost for producing 5 units, then dividing $980 by 5 units gives an average cost per unit of $196. This explanation is based on common mathematical principles of average cost calculation.
Learning Objectives
- Determine and recognize the relevance of average total expenditures, average fluctuating expenses, and steadfast costs within the production operation.