Question

question dynamo industries sold 80 packages of fireworks at a market price of $30 per package. if the firm earned a $2,000 profit, then what is the firms average total cost? provide your answer below: $

Explanation:

Step1: Calculate total revenue

Total revenue = Price × Quantity. Given price = $30 and quantity = 80. So, Total revenue = $30×80 = $2400.

Step2: Calculate total cost

Profit = Total revenue - Total cost. Given profit = $2000 and total revenue = $2400. Then, Total cost = Total revenue - Profit = $2400 - $2000 = $400.

Step3: Calculate average total cost

Average total cost = Total cost÷Quantity. Quantity = 80 and total cost = $400. So, Average total cost = $\frac{400}{80}=5$.

Answer:

$5