Ask Question
27 November, 14:00

Slider owns a hamburger restaurant. Slider's minimum average variable cost is $10 at a quantity of 100 hamburgers, and his minimum average total cost is $15 at a quantity of 200 hamburgers. His total fixed cost is $300. Use this information to answer the questions. What is Slider's AVC when he sells 200 hamburgers

+4
Answers (1)
  1. 27 November, 16:19
    0
    As, per To the Given Information:

    Minimum AVC = $10, When Quantity = 100 Hamburgers

    Minimum (AC) = $15, When Quantity = 200 Hamburgers

    Fixed Cost = $300

    To find out the Average variable cost when the quantity of 200 hamburgers sold, we have to compute the Total Cost;

    Total Cost = Average Cost * Quantity

    Total Cost = 15 x 200

    Total Cost = 3,000

    Now, Variable Cost (VC)

    Variable Cost = Total Cost - Fixed Cost

    Variable Cost = 3,000 - 300

    Variable Cost = 2,700

    Thus,

    AVC when Quantity sold = 200 hamburgers

    Average Variable Cost = Variable Cost / Quantity

    Average Variable Cost = 2,700 / 200

    Average Variable Cost = 13.5

    Therefore, the Average Variable Cost after selling 200 hamburgers is $13.5
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Slider owns a hamburger restaurant. Slider's minimum average variable cost is $10 at a quantity of 100 hamburgers, and his minimum average ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers