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A publisher incurs a fixed expense of $2000 towards composing and other activities in printing a book. A variable cost of $2.25 per book is incurred towards paper, binding charges etc. What is the average cost per book if 40000 copies are printed?
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40000*2.25=90000
are you saying 90,000 is the cost of one book ? :o
no .
good :) keep going..
40000/2000
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hold up
total cost for printing 40,000 copies = fixed cost + variable cost
fixed cost = 2000 variable cost = 2.25*40,000 = 90,000
total cost = ?
92000
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so average cost is 920000/40000
yes !
2.3
2.30
looks good ^^
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