The total cost at 5 units of output is $ 30. The fixed cost is $ 5. The average variable cost at 5 units of output is:?

My answer is C. $5.

Variable cost is the cost of input which varies according to the level production. Fixed cost on the other hand is the cost which do not vary according to the level of production.

The computation for the average variable cost would be:

Total Cost – Fixed Cost = Variable Cost

$30 - $5 = $25 [variable cost]

Therefore, average variable cost is $5 ($25/5)

30-5=25/5=5 is a correct answer

c ) $5>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

The correct answer is c) $5.

c) $5

Total Cost (TC) = Fixed Cost (FC) + Variable Cost (VC)

$30 = $5 + VC

VC = $30 - $5

VC = $25 thus total variable cost

Therefore average variable cost at5 units = total variable cost divided by number of units 

=$25/5 = $5

TC-FC = VC

30-5 =25

25/5 =5

C.5

c) $5 is the average variable cost per unit at5 units of production.

Since the total cost is $30 and fixed cost is $5. Using the Total cost concept= Fixed cost + Variable cost.... $30= $5 + Variable cost.... than variable cost at5 units must be $25.... So option A $25.... if the question had asked variable cost per unit.... than25/5= $5 variable cost per unit... hence total cost=5+5(5)= $30.... However the question asks for average variable cost at5 units of output than must be option A $25. Correct me if i am wrong  

diff in cost i.e  (30 - (5 *5)) /5  =1 $.

Nehal Sir, correct me If I understood the question wrongly. Thanks.

The variable cost of at5 units output is $1