CA Foundation Question > Calculate AFC at 2ndunit of outputa)235b)290c...

Calculate AFC at 2^{nd} unit of output

- a)235
- b)290
- c)310
- d)920

Correct answer is option 'B'. Can you explain this answer?

Well as we know TFC =TC at 0 level of output so TFC =580..now AFC at 2nd unit of output will be.. (use formula TFC=AFC*output)... AFC =TFC/output =580/2=Rs 290...

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