CA Foundation Exam  >  CA Foundation Questions  >  A firm has variable cost of Rs. 1,000 at 5 un... Start Learning for Free
A firm has variable cost of Rs. 1,000 at 5 units of output. If fixed cost are Rs. 400, what will be the average total cost at 5 units of output?
  • a)
    380
  • b)
    280
  • c)
    60
  • d)
    400
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
A firm has variable cost of Rs. 1,000 at 5 units of output. If fixed c...
Calculating Average Total Cost at 5 Units of Output

Given information:
Variable cost at 5 units of output = Rs. 1,000
Fixed cost = Rs. 400

To calculate the average total cost at 5 units of output, we need to consider both the fixed and variable costs. The formula for average total cost is:

Average total cost = (Fixed cost + Variable cost) / Number of units produced

Substituting the values given in the question, we get:

Average total cost = (400 + 1,000) / 5
Average total cost = 1,400 / 5
Average total cost = 280

Therefore, the average total cost at 5 units of output is Rs. 280.
Free Test
Community Answer
A firm has variable cost of Rs. 1,000 at 5 units of output. If fixed c...
ATC= total cost i.e. fixed cost + variable cost / units
ATC = 1000/5+ 400/5
=280
Explore Courses for CA Foundation exam
A firm has variable cost of Rs. 1,000 at 5 units of output. If fixed cost are Rs. 400, what will be the average total cost at 5 units of output?a)380b)280c)60d)400Correct answer is option 'B'. Can you explain this answer?
Question Description
A firm has variable cost of Rs. 1,000 at 5 units of output. If fixed cost are Rs. 400, what will be the average total cost at 5 units of output?a)380b)280c)60d)400Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A firm has variable cost of Rs. 1,000 at 5 units of output. If fixed cost are Rs. 400, what will be the average total cost at 5 units of output?a)380b)280c)60d)400Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A firm has variable cost of Rs. 1,000 at 5 units of output. If fixed cost are Rs. 400, what will be the average total cost at 5 units of output?a)380b)280c)60d)400Correct answer is option 'B'. Can you explain this answer?.
Solutions for A firm has variable cost of Rs. 1,000 at 5 units of output. If fixed cost are Rs. 400, what will be the average total cost at 5 units of output?a)380b)280c)60d)400Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation. Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of A firm has variable cost of Rs. 1,000 at 5 units of output. If fixed cost are Rs. 400, what will be the average total cost at 5 units of output?a)380b)280c)60d)400Correct answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of A firm has variable cost of Rs. 1,000 at 5 units of output. If fixed cost are Rs. 400, what will be the average total cost at 5 units of output?a)380b)280c)60d)400Correct answer is option 'B'. Can you explain this answer?, a detailed solution for A firm has variable cost of Rs. 1,000 at 5 units of output. If fixed cost are Rs. 400, what will be the average total cost at 5 units of output?a)380b)280c)60d)400Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of A firm has variable cost of Rs. 1,000 at 5 units of output. If fixed cost are Rs. 400, what will be the average total cost at 5 units of output?a)380b)280c)60d)400Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice A firm has variable cost of Rs. 1,000 at 5 units of output. If fixed cost are Rs. 400, what will be the average total cost at 5 units of output?a)380b)280c)60d)400Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
Explore Courses for CA Foundation exam

Top Courses for CA Foundation

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev