Calculate Total Variable Cost, Total Fixed Cost, Total Cost, Aver… - Vidyadip

Question

Calculate Total Variable Cost, Total Fixed Cost, Total Cost, Average Fixed Cost, Average Variable Cost, Average Total Cost.

S No.
1.	Rent	10,000
2.	Number of workers employed	50
3.	Salary paid to each worker	200
4.	Interest on capital	5,000
5.	Raw material purchased	6,000
6	Total quantity produced	100
7.	Insurance premium paid	1,500

✓

Answer

TVC = Raw material purchased + salary (no. of workers * salary paid to each worker)
= 6000 + (200 ~ 50) = 6000 + 10000 = 16,000 \
TFC = Rent + Interest on capital + Insurance premium paid
= 10000 + 5000 + 1500 = 16500
TC = TVC + TFC = 16,000 + 16500 = 32,500
AFC = 165 AVC = 160 ATC = 325

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