A firm that produces and sells toys has a factory located in New Town built on a 50,000 square feet plot of land. The following table gives information about the costs of production and output of the firm. Table 6-1 Cost of plant and machinery $20000 Wages paid to labor $4000 Annual factory rent $10000 Annual registration fees paid to an industry association $1000 Marketing Costs $20000 Cost of raw materials used in production $3000 Cost of packaging used for the final product $400 Number of toys produced per day 1,000 The price of a toy $30.

What is the average fixed cost of producing a toy? 

Answer rating: 100% (QA)

To calculate the average fixed cost of producing a toy we ... View the full answer