Question

The cost of manufacturing a molded part is related to the quantity produced during a production run. When 100 parts are produced, the cost is $300. When 104 parts are

produced, the cost is $324. What is the average cost per part?
OA $0.23 per part
B. $6 per part
OC. $0.17 per part
OD. $7 per part

Answer 1

B. $6 per part

Explanation:

The average cost per part can be computed as follows

Average Cost = (324-300)/(104-100)

= 24/4

=$6

Answer: B. $6 per part