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For manufacturing a certain item, the fi...

For manufacturing a certain item, the fixed cost is 9000 and the variable cost of producing each unit is Rs 30. The average cost of producing 60 units is -

A

Rs 150

B

Rs 180

C

Rs 240

D

Rs 120

Text Solution

AI Generated Solution

The correct Answer is:
To find the average cost of producing 60 units, we will follow these steps: ### Step 1: Identify the fixed and variable costs - Fixed cost (FC) = Rs 9000 - Variable cost per unit (VC) = Rs 30 ### Step 2: Calculate the total variable cost for 60 units - Total variable cost (TVC) for 60 units = Variable cost per unit × Number of units - TVC = 30 × 60 = Rs 1800 ### Step 3: Calculate the total cost (TC) of producing 60 units - Total cost (TC) = Fixed cost + Total variable cost - TC = FC + TVC - TC = 9000 + 1800 = Rs 10800 ### Step 4: Calculate the average cost (AC) of producing 60 units - Average cost (AC) = Total cost / Number of units - AC = TC / 60 - AC = 10800 / 60 = Rs 180 ### Final Answer: The average cost of producing 60 units is Rs 180. ---
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