Exhibit 6-12 Cost schedule for producing pizza By filling in the blanks in Exhibit 6-12, the AFC of 3 pizzas is shown to be equal to:

Question

Exhibit 6-12  Cost schedule for producing pizza  By filling in the blanks in Exhibit 6-12, the AFC of 3 pizzas is shown to be equal to:

Quizplus · Accepted Answer

AFC (Average Fixed Cost) is calculated by dividing the total fixed costs by the level of output. In this case, the total fixed cost is given as $20 and the level of output for 3 pizzas is given as 1.5. Therefore, AFC = $20/1.5 = $13.33.

Exhibit 6-12 Cost Schedule for Producing Pizza by Filling in the Blanks