A manufacturer of specialised eco-friendly cargo bicycles, EnviroCycle, has the following cost structure at different levels of weekly production:
| Weekly output (units) | 0 | 80 | 160 | 240 | 320 | 400 |
|---|---|---|---|---|---|---|
| Total cost (£) | 18,000 | 24,400 | 30,200 | 35,400 | 40,000 | 44,000 |
What is the average variable cost (AVC) when 320 units are produced?
£56.25
£57.50
£68.75
£125.00
