blilaf calculations \I'IEICI a [Olal fEVEI'lIJE OI $AID,UUU and $349,600 at DI'ICES 0| $11230 DEI' Doll} and $43.00 DEI' DOIO, IESDECIJVEW. In order to li'IEl variable cost, you can use [he fact lhat average variable (:05! (AVG) is equal to variable cost Iivided by quantiy produced. Selecting [he pu'ple pOi'ltS (ciarnond symbols), you can see [hat [he MIC of producing 7,500 polos is $12.50 per polo; [he AVC of produchg 10,000 poles is $14.00 per polo; and me AVC oi produchg 12,000 poles is $17.50 per polo. Thereiore, [he variable cost at eadl of?lese 0111M: levels is as folows:
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computation for variable cost
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