O'Connor Lamp Factory has total fixed costs of $4500.O'Connor Lamp Factory's average variable cost per lamp is $30 and its average total cost is $45.O'Connor Lamp Factory sells each lamp for $100 each.How many lamps is O'Connor Lamp Factory currently manufacturing:

Question

Quizplus · Accepted Answer

To find out the number of lamps being manufactured, we can use the formula: 
Average Total Cost = (Total Fixed Cost + Total Variable Cost) / Number of Units

Substituting the given values: 
$45 = ($4500 + Total Variable Cost) / Number of Units

Solving for Total Variable Cost: 
Total Variable Cost = $45 * Number of Units - $4500

We know that Average Variable Cost per lamp is $30, so: 
$30 = Total Variable Cost / Number of Units 
Total Variable Cost = $30 * Number of Units

Substituting in the previous equation: 
$30 * Number of Units = $45 * Number of Units - $4500 
$15 * Number of Units = $4500 
Number of Units = 300

Therefore, O'Connor Lamp Factory is currently manufacturing 300 lamps.

O'Connor Lamp Factory Has Total Fixed Costs of $4500