Question

Marcelle's fixed cost of producing 50,000 board games is $100,200. The average variable cost is $1.44 per game. What is the average cost per game?

Answer 1

The average cost per game is $3.44.

Explanation:

Marcelle's fixed cost of producing 50,000 board games = $100,200

The average variable cost = $1.44 per game.

variable cost for 50,000 board games = 50,000 × 1.44 = $72,000

Total cost of producing 50,000 board games = fixed cost + variable cost

= 100,200 + 72,000 = $172,200

The average cost per game = \frac{\text{total cost}}{\text{number of production}}

=
`(172200)/(50000)` = $3.44

The average cost per game is $3.44.