Figure and Table: Variable, Fixed, and Total Costs (Figure and Table: Variable, Fixed, and Total Costs) Look at the figure and table Variable, Fixed, and Total Costs.In the figure, when 96 bushels of wheat is produced, the average fixed cost is ,
Average variable cost is ________, and average total cost is _.
A)$7.84; $11.76; $19.60
B)$133.33; $200; $333.33
C)$4.17; $16.67; $20.83
D)$5.33; $13.33; $18.67

Question

Figure and Table: Variable, Fixed, and Total Costs   (Figure and Table: Variable, Fixed, and Total Costs) Look at the figure and table Variable, Fixed, and Total Costs.In the figure, when 96 bushels of wheat is produced, the average fixed cost is ,
Average variable cost is ________, and average total cost is _.
A)$7.84; $11.76; $19.60 
B)$133.33; $200; $333.33 
C)$4.17; $16.67; $20.83 
D)$5.33; $13.33; $18.67

Quizplus · Accepted Answer

From the table, we can see that when 96 bushels of wheat are produced, the total cost is $200, the fixed cost is $100, and the variable cost is $100. Therefore, the average fixed cost is $100/96 = $1.04, the average variable cost is $100/96 = $1.04, and the average total cost is $200/96 = $2.08. To convert these costs into per bushel costs, we divide each average cost by the number of bushels produced, which is 96. This gives us an average fixed cost of $1.04/96 = $0.0108 per bushel, an average variable cost of $1.04/96 = $0.0108 per bushel, and an average total cost of $2.08/96 = $0.0217 per bushel. To round to the nearest cent, we get an average fixed cost of $0.01 per bushel, an average variable cost of $0.01 per bushel, and an average total cost of $0.02 per bushel. Thus, the answer is C.