If a company produces 1,000 units at a total cost of $15,000, what is the averag

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Question: If a company produces 1,000 units at a total cost of $15,000, what is the average cost per unit?

Options:

Correct Answer: $10

Solution:

Average cost per unit = Total cost / Number of units = $15,000 / 1,000 = $15.

If a company produces 1,000 units at a total cost of $15,000, what is the average cost per unit?

If a company produces 1,000 units at a total cost of $15,000, what is the average cost per unit?

Step 1: Identify the total cost of production, which is $15,000.
Step 2: Identify the total number of units produced, which is 1,000 units.
Step 3: Use the formula for average cost per unit, which is Average cost per unit = Total cost / Number of units.
Step 4: Substitute the values into the formula: Average cost per unit = $15,000 / 1,000.
Step 5: Perform the division: $15,000 divided by 1,000 equals $15.
Step 6: Conclude that the average cost per unit is $15.

Average Cost Calculation – The average cost per unit is calculated by dividing the total cost by the number of units produced.