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Gizmos, Inc. produces gizmos at an average total cost of $15 and an average variable cost of $12. The only fixed input used in the production of gizmos costs $240. How many gizmos does Gizmos, Inc. produce?

Respuesta :

Answer:

80

Explanation:

Total cost = fixed cost + variable cost

Average total cost = average fixed cost + average variable cost.

Average total cost = Total cost / quantity

Average fixed cost = fixed cost / quantity

Average variable cost = variable cost/ quantity

$15 = average fixed cost + $12

Average fixed cost = $3

Total fixed cost = $240

$3 = $240 / q

Q = 80

I hope my answer helps you

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