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Ted's Sleds Produces Sleds at an Average Variable Cost Per

Question 220

Multiple Choice

Ted's Sleds produces sleds at an average variable cost per unit of $39.18 when production quantity is 1,250 units. When production increases to 1,251 units the average variable cost declines to $39.16. What is the minimal price that Ted's Sleds can charge for the 1,251stsled without affecting net profits?


A) $13.89
B) $14.16
C) $14.21
D) $14.37
E) $14.44

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