The Average Fixed Costs for Cyndy's Floral Arrangements

Calculation of Average Fixed Costs:

Total Fixed Costs: $1,000

Number of Silk Flower Arrangements: 200

Explanation:

The question pertains to calculating the average fixed costs for Cyndy's Floral Arrangements when producing a certain number of goods. If the total fixed costs are $1,000 and the business produces 200 silk flower arrangements, we can find the average fixed costs by dividing the total fixed costs by the number of units produced. So, the average fixed costs would be calculated as follows:

$1,000 (Total Fixed Costs) ÷ 200 (Number of Silk Flower Arrangements) = $5 per arrangement

Therefore, the average fixed costs for Cyndy's Floral Arrangements, when producing 200 silk flower arrangements, are $5 per arrangement.

← Quality loss function understanding costs of poor quality Accounts receivable understanding the basics →

More Posts: