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Marcelle's fixed cost of producing 50,000 board games is $100,200. The average variable cost is $1.44 per game. What is the average cost per game?

Respuesta :

$3.01 is the exact average per game. :)

Answer:

The average cost per game is $3.44.

Step-by-step explanation:

Marcelle's fixed cost of producing 50,000 board games = $100,200

The average variable cost = $1.44 per game.

variable cost for 50,000 board games = 50,000 × 1.44 = $72,000

Total cost of producing 50,000 board games = fixed cost + variable cost

= 100,200 + 72,000 = $172,200

The average cost per game = \frac{\text{total cost}}{\text{number of production}}

= [tex]\frac{172200}{50000}[/tex] = $3.44

The average cost per game is $3.44.