Average fixed cost calculation

Steps:

• Calculate total fixed cost: Total cost - Total variable cost = $10,000 -$8,000 = $2,000.
• Divide total fixed cost by quantity: $2,000 / 10 =$200.

Why A is correct:

• Average fixed cost is total fixed cost divided by output quantity, per standard cost accounting formula (AFC = TFC / Q).

Why the others are wrong:

• B is average variable cost ($8,000 / 10 =$800).
• C is total fixed cost ($2,000), not per unit.
• D doubles total fixed cost without dividing by quantity.

Final answer: A