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I know the actual formulas but I also know you need to use the first total cost output for some of the functions.

I need help in the formulas to get the AVC AFC and ATC. I know the actual formulas but I also know you need to use the first total cost output for some of the functions.

The cost structure of a manufacture for microchips is described in the table shown below.

The firm's fixed cost equal $15,000 per day. Calculate the average variable cost, average fixed cost, and average total cost at each output level. (answers need to be rounded to the nearest cent.)



Microchip Data.PNG

Microchip Data.PNG

Top Answer

Average Variable cost=Total variable cost/total output... View the full answer

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Other Answers

For 35000 units Average variable cost = 50000 /... View the full answer

1 comment
  • Reference :- https://accountingexplained.com/managerial/cost-behavior/high-low-method
    • Zain.Rajani
    • Jan 04, 2019 at 6:39am

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