CA Foundation Exam > CA Foundation Questions > A firm producing 7 units of output has an ave...
Start Learning for Free
A firm producing 7 units of output has an average total cost of Rs. 150 and has to pay Rs. 350 to its fixed factors of production. How much of the average total cost is made up of variable cost ?
- a)Rs. 200
- b)Rs. 50
- c)Rs. 300
- d)Rs. 100
Correct answer is 'D'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
A firm producing 7 units of output has an average total cost of Rs. 15...
Given information:
- Units of output = 7
- Average total cost = Rs. 150
- Fixed cost = Rs. 350
To find: Variable cost
Formula:
Average total cost = Total cost / Units of output
Total cost = Fixed cost + Variable cost
Calculation:
We know that,
Average total cost = Total cost / Units of output
150 = (350 + Variable cost) / 7
1050 = 350 + Variable cost
Variable cost = 1050 - 350
Variable cost = Rs. 700
Now, we need to find how much of the average total cost is made up of variable cost. That can be calculated as:
Variable cost / Average total cost * 100
= 700 / 150 * 100
= 466.67%
However, this percentage is not a possible answer. We need to find how much of the average total cost is made up of variable cost in rupees. That can be calculated as:
Variable cost / Average total cost * Total cost
= 700 / 150 * (350 + 700)
= 100
Therefore, the answer is option (d) Rs. 100.
- Units of output = 7
- Average total cost = Rs. 150
- Fixed cost = Rs. 350
To find: Variable cost
Formula:
Average total cost = Total cost / Units of output
Total cost = Fixed cost + Variable cost
Calculation:
We know that,
Average total cost = Total cost / Units of output
150 = (350 + Variable cost) / 7
1050 = 350 + Variable cost
Variable cost = 1050 - 350
Variable cost = Rs. 700
Now, we need to find how much of the average total cost is made up of variable cost. That can be calculated as:
Variable cost / Average total cost * 100
= 700 / 150 * 100
= 466.67%
However, this percentage is not a possible answer. We need to find how much of the average total cost is made up of variable cost in rupees. That can be calculated as:
Variable cost / Average total cost * Total cost
= 700 / 150 * (350 + 700)
= 100
Therefore, the answer is option (d) Rs. 100.
Free Test
FREE
| Start Free Test |
Community Answer
A firm producing 7 units of output has an average total cost of Rs. 15...
Here the amt of total fixed cost is given soo first we have to remove the amt of avg fixed cost i.e. 350/7=50 now the avg cost = total avg cost -fixed avg cost 150 -50 100 hence answer becomes D
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
A firm producing 7 units of output has an average total cost of Rs. 150 and has to pay Rs. 350 to its fixed factors of production. How much of the average total cost is made up of variable cost ?a)Rs. 200b)Rs. 50c)Rs. 300d)Rs. 100Correct answer is 'D'. Can you explain this answer?
Question Description
A firm producing 7 units of output has an average total cost of Rs. 150 and has to pay Rs. 350 to its fixed factors of production. How much of the average total cost is made up of variable cost ?a)Rs. 200b)Rs. 50c)Rs. 300d)Rs. 100Correct answer is 'D'. Can you explain this answer? 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 A firm producing 7 units of output has an average total cost of Rs. 150 and has to pay Rs. 350 to its fixed factors of production. How much of the average total cost is made up of variable cost ?a)Rs. 200b)Rs. 50c)Rs. 300d)Rs. 100Correct answer is 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A firm producing 7 units of output has an average total cost of Rs. 150 and has to pay Rs. 350 to its fixed factors of production. How much of the average total cost is made up of variable cost ?a)Rs. 200b)Rs. 50c)Rs. 300d)Rs. 100Correct answer is 'D'. Can you explain this answer?.
A firm producing 7 units of output has an average total cost of Rs. 150 and has to pay Rs. 350 to its fixed factors of production. How much of the average total cost is made up of variable cost ?a)Rs. 200b)Rs. 50c)Rs. 300d)Rs. 100Correct answer is 'D'. Can you explain this answer? 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 A firm producing 7 units of output has an average total cost of Rs. 150 and has to pay Rs. 350 to its fixed factors of production. How much of the average total cost is made up of variable cost ?a)Rs. 200b)Rs. 50c)Rs. 300d)Rs. 100Correct answer is 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A firm producing 7 units of output has an average total cost of Rs. 150 and has to pay Rs. 350 to its fixed factors of production. How much of the average total cost is made up of variable cost ?a)Rs. 200b)Rs. 50c)Rs. 300d)Rs. 100Correct answer is 'D'. Can you explain this answer?.
Solutions for A firm producing 7 units of output has an average total cost of Rs. 150 and has to pay Rs. 350 to its fixed factors of production. How much of the average total cost is made up of variable cost ?a)Rs. 200b)Rs. 50c)Rs. 300d)Rs. 100Correct answer is 'D'. 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 producing 7 units of output has an average total cost of Rs. 150 and has to pay Rs. 350 to its fixed factors of production. How much of the average total cost is made up of variable cost ?a)Rs. 200b)Rs. 50c)Rs. 300d)Rs. 100Correct answer is 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
A firm producing 7 units of output has an average total cost of Rs. 150 and has to pay Rs. 350 to its fixed factors of production. How much of the average total cost is made up of variable cost ?a)Rs. 200b)Rs. 50c)Rs. 300d)Rs. 100Correct answer is 'D'. Can you explain this answer?, a detailed solution for A firm producing 7 units of output has an average total cost of Rs. 150 and has to pay Rs. 350 to its fixed factors of production. How much of the average total cost is made up of variable cost ?a)Rs. 200b)Rs. 50c)Rs. 300d)Rs. 100Correct answer is 'D'. Can you explain this answer? has been provided alongside types of A firm producing 7 units of output has an average total cost of Rs. 150 and has to pay Rs. 350 to its fixed factors of production. How much of the average total cost is made up of variable cost ?a)Rs. 200b)Rs. 50c)Rs. 300d)Rs. 100Correct answer is 'D'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice A firm producing 7 units of output has an average total cost of Rs. 150 and has to pay Rs. 350 to its fixed factors of production. How much of the average total cost is made up of variable cost ?a)Rs. 200b)Rs. 50c)Rs. 300d)Rs. 100Correct answer is 'D'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup