The Akron Slugger Company produces various types of wooden baseball bats. It has calculated the average cost per unit of a production level of 8 comma 000 bats to be $ 13. If $ 22 comma 800 of the total costs are fixed, what is the variable cost of producing each bat?

The total cost can be calculated by multiplying the average cost per unit by the number of units. At the production level of 8000 units at $13 per unit, the total cost will be,

Total cost = 13 * 8000 = $104000

The total cost is made up of both fixed and variable costs.

Total variable costs = Total costs - total fixed costs

Total variable costs = 104000 - 22800 = $81200

The variable cost per unit = 81200 / 8000 = $10.15 per unit

The Akron Slugger Company produces various types of wooden baseball bats. It has calculated the average cost per unit of a production level of 8 comma 000 bats to be $ 13. If $ 22 comma 800 of the total costs are​ fixed, what is the variable cost of producing each​ bat?

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The Akron Slugger Company produces various types of wooden baseball bats. It has calculated the average cost per unit of a production level of 8 comma 000 bats to be $ 13. If $ 22 comma 800 of the total costs are fixed, what is the variable cost of producing each bat?