Table 13-7
Teacher's Helper is a small company that has a subcontract to produce instructional materials for disabled children in public school districts. The owner rents several small rooms in an office building in the suburbs for $600 a month and has leased computer equipment that costs $480 a month.

-Refer to Table 13-7.What is the average fixed cost for the month if nine instructional modules are produced?

Question

Table 13-7
Teacher's Helper is a small company that has a subcontract to produce instructional materials for disabled children in public school districts. The owner rents several small rooms in an office building in the suburbs for $600 a month and has leased computer equipment that costs $480 a month.
 
-Refer to Table 13-7.What is the average fixed cost for the month if nine instructional modules are produced?

Quizplus · Accepted Answer

Average fixed cost is calculated by dividing total fixed costs by the number of units produced. If the total fixed cost is $1,080 and nine modules are produced, the average fixed cost is $1,080 / 9 = $120.00.

Table 13-7 Teacher's Helper Is a Small Company That Has a Subcontract