Barnard Enterprises had an average cost of $8.60 during a month when 75,000 units were produced. When production was 125,000 units several months later, the average cost dropped to $6.98.
Required:
(a.) Determine the fixed and variable portions of production costs.
(b.) What will unit cost be when production equals 110,000 units?

Question

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The Answer of Barnard Enterprises had an average cost of $8.60 during a month when 75,000 units were produced. When production was 125,000 units several months later, the average cost dropped to $6.98.
Required:
(a.) Determine the fixed and variable portions of production costs.
(b.) What will unit cost be when production equals 110,000 units?

Barnard Enterprises Had an Average Cost of $8