Average Cost math problem

A company is planning to manufacture mountain bikes. The fixed monthly cost is 125 000$ and each bike will cost 225$ to produce.
Determine the average cost of producing 10 000 bikes.
a. $237.50
b. 250$
c. 225$
d. None of these choices
e. 215$
Asked Jun 01, 2013
To get the per-unit share of the fixed cost, divide the fixed cost by 10,000. then add that amount to the production cost of each bike.
Answered Jun 01, 2013

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