Mr.D's Barbeque of Pickwick,TN produces 10,000 dry-rubbed rib slabs per year.Annually Mr.D's fixed costs are $50,000.The average variable cost per slab is a constant $2.The average total cost per slab then is

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Quizplus · Accepted Answer

The average total cost per slab is calculated by adding the average fixed cost per slab to the average variable cost per slab. The average fixed cost per slab is $50,000 / 10,000 = $5. Adding the average variable cost of $2, the average total cost per slab is $5 + $2 = $7.

MrD's Barbeque of Pickwick,TN Produces 10,000 Dry-Rubbed Rib Slabs Per