A company sold 1,000 truck tires and has total variable costs of $40,000,total fixed costs of $30,000,and sales revenue of $110,000.What is the average cost per tire?

Question

Quizplus · Accepted Answer

The average cost per tire is calculated by dividing the total costs (variable + fixed) by the number of tires sold. Total costs = $40,000 (variable) + $30,000 (fixed) = $70,000. Dividing this by 1,000 tires gives an average cost of $70 per tire.

A Company Sold 1,000 Truck Tires and Has Total Variable