Scenario 9

Scenario 9.1: 21st Century Pen Inc.produces 2000 pens per day,and hires 20 workers at a cost of $200 per day per worker.The price of each pen is $5 each.21st Century Pen Inc.pays a daily rental rate of $60 on its factory and a daily insurance rate of $20.21st Century Pen Inc.has a ten year lease on the factory and insurance contract for a year,the company has no other expenses.
-Refer to Scenario 9.1.21st Century Pen Inc.'s average total cost at an output of 2000 pens per day is approximately:

A) $2.03 per unit.
B) $2 per unit.
C) $2.04 per unit.
D) $2.01 per unit.

Correct Answer:

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