Exhibit 6-8 Cost schedule for producing pizzas

-By filling in the blanks in Exhibit 6-8,the AFC of 4 pizzas is shown to be equal to:

Question

Exhibit 6-8 Cost schedule for producing pizzas
 
-By filling in the blanks in Exhibit 6-8,the AFC of 4 pizzas is shown to be equal to:

Quizplus · Accepted Answer

To calculate the AFC (average fixed cost) for producing 4 pizzas, we need to divide the total fixed costs by the quantity of pizzas produced.

From the table, we can see that the total fixed cost is $40.00. The quantity of pizzas produced for 4 pizzas is 4, so we divide $40.00 by 4 to get the AFC of $10.00.

Therefore, the best choice is B, $10.00.

Exhibit 6-8 Cost Schedule for Producing Pizzas