Asked by
DAYRA ANDREA CELY BAEZ
on Nov 04, 2024
Verified
Refer to Figure 8.1 above. The total fixed costs for Cyndy's Floral Arrangements are $1,000. If Cyndy's Floral Arrangements produces 200 silk flower arrangements, the average fixed costs are
A) $0.20.
B) $5.
C) $20.
D) $200.
Average Fixed Costs
The total fixed costs of production divided by the quantity of output produced, which decreases as production increases.
Total Fixed Costs
Expenses that do not change in proportion to the activity of a business, such as rent, salaries, or insurance premiums.
Silk Flower Arrangements
Artificial flower displays made from silk and other materials, designed to replicate the appearance of natural flowers.
- Absorb the theories related to fixed, variable, and comprehensive costs.
- Determine the average fixed costs, sum of variable costs, and total costs utilizing the specified data.
- Apply graphic data to investigate cost arrangements and make enlightened decisions.
Verified Answer
NL
Learning Objectives
- Absorb the theories related to fixed, variable, and comprehensive costs.
- Determine the average fixed costs, sum of variable costs, and total costs utilizing the specified data.
- Apply graphic data to investigate cost arrangements and make enlightened decisions.