Business – 5.4 Costs – Uses of cost information | e-Consult
5.4 Costs – Uses of cost information (1 questions)
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Answer 1
- Average Cost (AC) at 20 units = Total Cost ÷ Output = £460 ÷ 20 = £23 per unit.
- Marginal Cost (MC) between 10 and 20 units = Change in Total Cost ÷ Change in Output = (£460‑£340) ÷ (20‑10) = £120 ÷ 10 = £12 per unit.