If Randy's fixed cost totals $800 with variable cost per unit of $10 at a quantity of 100 units,what would his average total cost equal?

Question

Quizplus · Accepted Answer

To calculate the average total cost, we need to first calculate the total cost.

Total Cost = Fixed Cost + (Variable Cost per unit * Quantity) 
Total Cost = $800 + ($10 * 100) 
Total Cost = $1800

Now, to calculate the average total cost, we divide the total cost by the quantity:

Average Total Cost = Total Cost / Quantity 
Average Total Cost = $1800 / 100 
Average Total Cost = $18.00

Therefore, the answer is B.

If Randy's Fixed Cost Totals $800 with Variable Cost Per