Complete the following cost schedule :
Total cost = Total Fixed cost + Total variable cost
Total fixed cost = Total cost - Total variable cost
The total fixed is 200 because at 0 quantity the total cost ( without any variable cost) is 200.
Average variable cost = Total cost/ Quantity
AT 0 quantity
Average variable cost = Total cost/ Quantity
Average variable cost =200/0
Average variable cost =0
At 1 quantity
Average variable cost = Total cost/ Quantity
1000 = Total cost/ 1
Total cost = 1000
Total variable cost = Total cost -Total fixed cost
Total variable cost = 1000- 200
Total variable cost = 800
At 2 quantity
Total cost = Total Fixed cost + Total variable cost
Total cost = 200 + 180
Total cost = 380
Average variable cost = Total cost/ Quantity
Average variable cost = 380/2
Average variable cost = 190
At 3 quantity
Average variable cost = Total cost/ Quantity
80 = Total cost/3
Total cost = 80*3 = 240
Total variable cost = Total cost -Total fixed cost
Total variable cost = 240- 200
Total variable cost = 40
At 4 quantity
Total variable cost = Total cost -Total fixed cost
Total variable cost = 490- 200
Total variable cost = 290
Average variable cost = Total cost/ Quantity
Average variable cost =490/4
Average variable cost =122.5
Couldn't generate an explanation.
Generated by AI. May contain inaccuracies — always verify with your textbook.
