If the average variable cost per unit is $5 and they produced 100 units, the total variable costs were $500, not $300. It is the total fixed costs that are $300, not the total variable cost.
If the average variable cost per unit is $5 and they produced 100 units, the total variable costs were $500. Given total costs of $800, that means that the fixed costs were a total of $300, or $3 per unit.
The marginal cost is the cost to produce one more unit — in this case the 101st unit. This would be equal to the variable cost per unit, which the problem says is $5 per unit, not $8 per unit.
The marginal cost is the cost to produce one more unit — in this case the 101st unit. This would be equal to the variable cost per unit, which the problem says is $5 per unit, not $3 per unit.
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