Answer:
The average variable cost for producing 42 sneakers is $2.98 per unit.
Step-by-step explanation:
We have, for 42 sneakers, the following costs:
- Fixed costs: $118
- Variable costs: $125
The total cost for 42 snickers is $243.
The average variable cost can be calculated dividing the total variable cost by the number of units.
This, for 42 snickers, is:
[tex]\bar{vc}=\dfrac{VC}{q}=\dfrac{125}{42}\approx2.98[/tex]
