If the total cost is $70000 and the level of production is 30000 units then the average cost will be __________?
Correct answer: A. $2.33
- A. $2.33
- B. $3.33
- C. $4.33
- D. $5.33
Explanation
Average cost is calculated by dividing total cost by output: $70,000 ÷ 30,000 units = approximately $2.33 per unit. This is a unit-cost calculation, not total cost divided by selling price.
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