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The total cost of producing 100 units of a good is $800. If a firm’s average variable cost is $5 per unit, then the firm’s

 

 

a. average fixed cost is $3.

 

b. total variable cost is $300.

 

c. marginal cost is $3.

 

d. marginal cost is $8.

 

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Question added by mohamed Hakim CMA CPA Candidate , Accounting Manager , Andersen saudi arabia
Date Posted: 2015/05/26
Farah Abla
by Farah Abla , Financial Control Officer , Arab Bank plc

a). Average Fixed Costs = $3 since:

* Total Cost (TC) = $800

* Total Variable Cost (TVC) =$500

* then; Total Fixed Cost (TFC) = TC - TVC = $300

& Average Fixed Cost (AFC) = TFC/Produced Quantity = 300/100 = $3/unit produced

mohamed Hakim CMA CPA Candidate
by mohamed Hakim CMA CPA Candidate , Accounting Manager , Andersen saudi arabia

good answer

from all

_____________

 

Hasan Kothawala
by Hasan Kothawala , Investment Accountant , Ali Al muzaini Real Estate Co

Total Cost Per Unit= $800/100=$8

Total Cost= Fixed+Variable

$8=Fixed+$5

Fixed=$8-$5=$3

Hence,

Fixed Cost = $3 Per Unit

 

FITAH MOHAMED
by FITAH MOHAMED , Financial Manager , FUEL AND ENERGY CO for transportion petroleum materials

a. ...>>>>>>>>>>>>>>>>>>>>>>>average fixed cost is $3.

 

 

 Average Fixed Cost =(800-500)/100=3$

Vinod Jetley
by Vinod Jetley , Assistant General Manager , State Bank of India

^^^^^^^^^^^^^^^^^^^^^^a. average fixed cost is $3.

Ahmed Abdi Mahad
by Ahmed Abdi Mahad , Director of Internal Auditing Directorate , Jigjiga University

The answer is choice A, average fixed costs.

 

Because:

 

Total cost =800

 

Total Variable cost =5(100) =500

 

Total fixed cost = TC - TVC

 

Total fixed cost =800 -500 =300

 

Average FC = Total Fixed Cost / Total quantity

 

Average FC =300 /100 =3

 

ايمن محمد عاطف محمد
by ايمن محمد عاطف محمد , Director of the control and regulation unit , ACOLID

a. average fixed cost is $3.---------------------------

Mohamed Abdelrahman
by Mohamed Abdelrahman , Senior Accountant , Msafat Company

correct answer

a. average fixed cost is $3.

vivek kumar
by vivek kumar , Accountant , Empower

a. Bcz if you minus the total variable cost of $500 (5*100) from $800 it will result in total fixed cost of $300 and if $300 F.cost is divided into the number of units then the average fixed cost will be $3 (300/100)

 

Kind regards,

Vivek Kumar

عبدالحميد عفلي
by عبدالحميد عفلي , متصرّف مسؤول المحاسبة العامة والنزاعات الجبائية , الشركة الجهوية للنقل بالقيروان

average fixed cost is $3.....................

Ahmed kandil
by Ahmed kandil , Cost Controller , Battour Holding Cpompany

Answer ( A ) is the correct answer Thank you

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