Given that FC = N500, VC = N1,500, and Q = 50 units. Find the average cost of the product.

Answer Details

To find the average cost of the product, we need to divide the total cost (fixed cost + variable cost) by the total number of units produced. In this case, we are given that the fixed cost (FC) is N500, the variable cost per unit (VC) is N1,500, and the quantity produced (Q) is 50 units. The total cost can be calculated as follows: Total Cost = Fixed Cost + Variable Cost Total Cost = N500 + (N1,500 x 50) Total Cost = N75,500 Therefore, the average cost of the product can be calculated as follows: Average Cost = Total Cost / Quantity Produced Average Cost = N75,500 / 50 Average Cost = N1,510 So, the average cost of the product is N1,510. (N40) is the closest answer, but it is not correct.