Respuesta :
If a factory's total fixed cost is $2000. When 200 units of output are produced, the average total cost is $18, then the total variable cost is $18.
What is Total Variable Cost?
- Total Variable Cost can be defined as the total of all the variable costs that would change in proportion to the output or the production of units and therefore helps in analyzing the overall costing and profitability of the company.
- It can be calculated by multiplying the number of units produced by the Variable cost per unit.
- Total variable cost = Total quantity x Variable cost per unit of output
Here,
- The given total fixed cost = 2000
- Total output = 200
- Average total cost = 18
- Average variable cost = Average total cost / Q
= 18/ 200
=0.09
- Total variable cost = 200 × 0.09
= 18
Hence, $18 is the answer.
To learn more about variable costs, refer to: https://brainly.com/question/21163126
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