Jennifer's fixed cost of providing consulting services to clients is $1,000 per month. Her variable cost of consulting 10 clients is $2,000. What is Jennifer's average total cost of consulting 10 clients?

Question

Quizplus · Accepted Answer

The average total cost of consulting 10 clients is calculated by dividing the total cost by the number of clients. The total cost includes both fixed and variable costs. Here, the fixed cost is $1,000 and the variable cost for 10 clients is $2,000, making the total cost $3,000. Dividing this by the 10 clients gives an average total cost of $300 per client.

Jennifer's Fixed Cost of Providing Consulting Services to Clients Is