Mizumi's Sushi has a fixed cost of $8,000 and a total cost of $11,000 when the quantity produced is 2,000 sushi rolls. At this quantity, what is Mizumi's average variable cost (AVC) and average total cost (ATC)?

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Quizplus · Accepted Answer

AVC = $1.50 and ATC = $5.50AVC is calculated by dividing the variable cost by the quantity produced. In this case, the variable cost is $11,000 - $8,000 = $3,000. So, AVC = $3,000 / 2,000 = $1.50.ATC is calculated by dividing the total cost by the quantity produced. In this case, the total cost is $11,000. So, ATC = $11,000 / 2,000 = $5.50.

Mizumi's Sushi Has a Fixed Cost of $8,000 and a Total