Mark is trying to determine his firm's average cost per unit of production. He finds that the cost for all labor and materials is $80,000 and fixed overhead expenses are $40,000. If the company produces 20,000 items in the time period, the average cost is_____.

Question

Mark is trying to determine his firm's average cost per unit of production.  He finds that the cost for all labor and materials is $80,000 and fixed overhead expenses are $40,000.  If the company produces 20,000 items in the time period, the average cost is_____.

Ms. Sue · Answer

(80,000 + 40,000) / 20,000 = ?

hayat · Answer

1. Mark is trying to determine his firm's average cost per unit of production. He finds that the cost for all labor and materials is $80,000 and fixed overhead expenses are $40,000. If the company produces 20,000 items in the time period, the average cost is __________.

$12

$6

$2

$4