An artisanal coffee roastery roasts 80 batches of organic coffee per month. The monthly fixed costs of running the roastery (such as rent and equipment leasing) total £4,800. The average variable cost per batch is £14.20.
Assuming the average variable cost remains unchanged, what is the change in the average total cost when the roastery increases its monthly production to 81 batches?
Decreases by £0.92
Decreases by £0.74
Increases by £14.20
Remains the same
