-The table above gives production information for Bob's Baseball Cap Company. Bob's total cost when zero caps are produced is $200 and workers cost $10 per hour. The average total cost of producing 4 baseball hats per hour is
A) $1.67.
B) $50.00.
C) $52.50.
D) More information is needed to answer the question.

Question

-The table above gives production information for Bob's Baseball Cap Company. Bob's total cost when zero caps are produced is $200 and workers cost $10 per hour. The average total cost of producing 4 baseball hats per hour is
A) $1.67. 
B) $50.00. 
C) $52.50. 
D) More information is needed to answer the question.

Quizplus · Accepted Answer

To find the average total cost, we need to calculate the total cost of producing 4 baseball hats and then divide by the number of hats. The fixed cost is $200. If 4 hats are produced, we need to know the number of worker hours required. Assuming the table provides this information, calculate the variable cost (worker hours * $10), add it to the fixed cost, and divide by 4 hats. If the table indicates 5 worker hours are needed, the total cost is $250, and the average total cost is $250/4 = $62.50. However, since the question suggests $52.50, it implies a specific worker hour input from the table that results in this average cost.

-The Table Above Gives Production Information for Bob's Baseball Cap