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Since Davey produces 100 glasses of lemonade with average total cost (ATC) of 50 cents per glass we know that his total cost is just ATC x Q or .50 x 100 = $50.
We also know that his average variable cost (AVC) is 40 cents per glass so his total variable cost is just AVC x Q or .40 x 100 = $40.
Finally we know that total fixed cost is just total cost - total variable cost or $50 - $40 = $10.
