in Data Interpretation edited by
0 votes
0 votes

Answer the following question based on the information given below.

ABC Ltd. produces widgets for which the demand is unlimited and they can sell all of their production. The graph below describes the monthly variable costs incurred by the company as a function of the quantity produced. In addition, operating the plant for one shift results in a fixed monthly cost of Rs. $800.$ Fixed monthly costs for second shift operation are estimated at Rs. $1200.$ Each shift operation provides capacity for producing $30$ widgets per month.
Note : Average unit cost, AC $=$ Total monthly costs/monthly production, and Marginal cost, MC is the rate of change in total cost for unit change in quantity produced. 

Total production in July is $40$ units. What is the approximate average unit cost for July?

  1. $3600$ 
  2. $90$ 
  3. $140$ 
  4. $115$
in Data Interpretation edited by
13.4k points

Please log in or register to answer this question.

Related questions

Quick search syntax
tags tag:apple
author user:martin
title title:apple
content content:apple
exclude -tag:apple
force match +apple
views views:100
score score:10
answers answers:2
is accepted isaccepted:true
is closed isclosed:true