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Average fixed cost=Rs.20, quantity produced =10 units, what will be the average fixed cost 20th unit?
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Average fixed cost=Rs.20, quantity produced =10 units, what will be th...
Calculation of Average Fixed Cost for 20th Unit
Given data:
- Fixed cost = Rs. 20
- Quantity produced = 10 units
Calculation of Average Fixed Cost per Unit
Formula to calculate the average fixed cost per unit:
Average Fixed Cost per Unit = Total Fixed Cost / Quantity Produced
Using the given data, Average Fixed Cost per Unit can be calculated as:
Average Fixed Cost per Unit = Rs. 20 / 10 units = Rs. 2 per unit
Calculation of Average Fixed Cost for 20th Unit
Formula to calculate the average fixed cost for a specific unit:
Average Fixed Cost for a Specific Unit = Total Fixed Cost / Quantity Produced
Using the Average Fixed Cost per Unit calculated above, the average fixed cost for the 20th unit can be calculated as:
Average Fixed Cost for 20th Unit = Rs. 2 x 20 units = Rs. 40
Explanation
The average fixed cost per unit is calculated by dividing the total fixed cost by the quantity produced. In this case, the total fixed cost is Rs. 20 and the quantity produced is 10 units. Therefore, the average fixed cost per unit is Rs. 2.
To calculate the average fixed cost for the 20th unit, we simply multiply the average fixed cost per unit by the number of units (20). Therefore, the average fixed cost for the 20th unit is Rs. 40.
It is important to note that the average fixed cost per unit remains constant throughout the production process. This is because fixed costs do not change with the level of production. However, the total fixed cost and the average fixed cost for a specific unit will change as the quantity produced increases or decreases.
Community Answer
Average fixed cost=Rs.20, quantity produced =10 units, what will be th...
Q=10 AFC=20
AFC of 20th unit=10*20/20
200/20=10
AFC of 20th unit=10*20/20
200/20=10
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Average fixed cost=Rs.20, quantity produced =10 units, what will be the average fixed cost 20th unit? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Average fixed cost=Rs.20, quantity produced =10 units, what will be the average fixed cost 20th unit? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Average fixed cost=Rs.20, quantity produced =10 units, what will be the average fixed cost 20th unit?.
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