Question

The Akron Slugger Company produces various types of wooden baseball bats. It has calculated the average cost per unit of a production level of 7 comma 9007,900 bats to be $ 12$12. If $ 22 comma 600$22,600 of the total costs are​ fixed, what is the variable cost of producing each​ bat?

Answer 1

variable cost of producing is $72,200

Step-by-step explanation:

given data

total costs = 7,900

production @ $12

fixed = $22600

to find out

variable cost of producing each​ bat

solution

we know here that

total costs at 7,900 production @ $12 then that would be

= 7,900 × 12 = 94,800

so now we can say variable will be here = $94,800 - $22600

so variable = 72200

hence variable cost of producing is $72,200