Answer :

Total cost = Total Fixed cost + Total variable cost

Total fixed cost = Total cost - Total variable cost

The total fixed is 200 because at 0 quantity the total cost ( without any variable cost) is 200.

Average variable cost = Total cost/ Quantity

AT 0 quantity

Average variable cost = Total cost/ Quantity

Average variable cost =200/0

Average variable cost =0

At 1 quantity

Average variable cost = Total cost/ Quantity

1000 = Total cost/ 1

Total cost = 1000

Total variable cost = Total cost -Total fixed cost

Total variable cost = 1000- 200

Total variable cost = 800

At 2 quantity

Total cost = Total Fixed cost + Total variable cost

Total cost = 200 + 180

Total cost = 380

Average variable cost = Total cost/ Quantity

Average variable cost = 380/2

Average variable cost = 190

At 3 quantity

Average variable cost = Total cost/ Quantity

80 = Total cost/3

Total cost = 80*3 = 240

Total variable cost = Total cost -Total fixed cost

Total variable cost = 240- 200

Total variable cost = 40

At 4 quantity

Total variable cost = Total cost -Total fixed cost

Total variable cost = 490- 200

Total variable cost = 290

Average variable cost = Total cost/ Quantity

Average variable cost =490/4

Average variable cost =122.5

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