This is the total variable cost for producing 7 units. The total cost of production is the cost of the variable costs plus the fixed costs.
This is the total fixed cost for producing 7 units. The total cost of production is the cost of the variable costs plus the fixed costs.
This is the average total cost of producing 6 units multiplied by 6. The result is the total cost of producing 6 units. The question asks for the total cost of producing 7 units, not 6 units.
Total cost = variable cost + fixed cost. This table presents numbers for the average variable, fixed and total costs. Therefore, to find the total cost of producing seven units, one must look at the average total cost of producing seven units and multiply the total cost, in this case $36.86 by the number produced, int his case seven. This multiplication is necessary since the $36.83 is a per unit average cost, and we want to know how much it would cost to produce seven units. When doing so, the result is $258.02. ($36.86 × 7).
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The total cost of producing seven units is
