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Find the AC and AVC if entire output is sold at * 60 per unit from the following: Wage Bill 320,000 Raw-material Bill 360,000 Interest 36,000 Fuel consumption 10,000 Rent 34,000 (a) 50; 50 LES 350; 45 (C) 45; 45 (d) 345; 350?
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Find the AC and AVC if entire output is sold at * 60 per unit from the...
Finding the AC and AVC of a Company

Given Information:

Wage Bill = 320,000
Raw-material Bill = 360,000
Interest = 36,000
Fuel consumption = 10,000
Rent = 34,000
Selling price per unit = 60

Calculating Total Cost:

Total Cost = Wage Bill + Raw-material Bill + Interest + Fuel consumption + Rent
Total Cost = 320,000 + 360,000 + 36,000 + 10,000 + 34,000
Total Cost = 760,000

Calculating Average Cost (AC):

AC = Total Cost / Total Output
Given Selling price per unit = 60
Let's assume Total Output = x
60x = Total Revenue
Total Revenue = Total Cost
60x = 760,000
x = 12,666.67
Therefore, Total Output = 12,666.67

AC = Total Cost / Total Output
AC = 760,000 / 12,666.67
AC = 60

Calculating Average Variable Cost (AVC):

AVC = Total Variable Cost / Total Output
Total Variable Cost = Wage Bill + Raw-material Bill + Fuel consumption
Total Variable Cost = 320,000 + 360,000 + 10,000
Total Variable Cost = 690,000

AVC = Total Variable Cost / Total Output
AVC = 690,000 / 12,666.67
AVC = 54.45

Answer:

The AC of the company is 60 and the AVC is 54.45. Therefore, option (C) 45; 45 is incorrect. Option (d) 345; 350 is also incorrect because it is way higher than the given selling price of 60 per unit. Option (a) 50; 50 and option (b) 50; 45 are also incorrect.
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Find the AC and AVC if entire output is sold at * 60 per unit from the following: Wage Bill 320,000 Raw-material Bill 360,000 Interest 36,000 Fuel consumption 10,000 Rent 34,000 (a) 50; 50 LES 350; 45 (C) 45; 45 (d) 345; 350?
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Find the AC and AVC if entire output is sold at * 60 per unit from the following: Wage Bill 320,000 Raw-material Bill 360,000 Interest 36,000 Fuel consumption 10,000 Rent 34,000 (a) 50; 50 LES 350; 45 (C) 45; 45 (d) 345; 350? 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 Find the AC and AVC if entire output is sold at * 60 per unit from the following: Wage Bill 320,000 Raw-material Bill 360,000 Interest 36,000 Fuel consumption 10,000 Rent 34,000 (a) 50; 50 LES 350; 45 (C) 45; 45 (d) 345; 350? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Find the AC and AVC if entire output is sold at * 60 per unit from the following: Wage Bill 320,000 Raw-material Bill 360,000 Interest 36,000 Fuel consumption 10,000 Rent 34,000 (a) 50; 50 LES 350; 45 (C) 45; 45 (d) 345; 350?.
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