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Question 12

A boutique ceramics workshop produces 80 handmade vases. The fixed costs associated with operating the workshop total £3,200£3,200£3,200, with an average variable cost of £14.50 £14.50\,£14.50 per vase.

If the average variable cost remains unchanged, what is the change in the average total cost when the workshop increases production to 81 handmade vases?

Decreases by £39.51£39.51£39.51

Increases by £14.50£14.50£14.50

Decreases by £0.49£0.49£0.49

Remains the same

Business Objectives Questions

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