Table 9.3
$\begin{array}{|c|c|c|c|c|}
\hline \begin{array}{c}
\text { Quantity of } \
\text { Lanterns }
\end{array} & \begin{array}{c}
\text { Fixed Cost } \
\text { (dollars) }
\end{array} & \begin{array}{c}
\text { Variable Cost } \
\text { (dollars) }
\end{array} & \begin{array}{c}
\text { Total Cost } \
\text { (dollars) }
\end{array} & \begin{array}{c}
\text { Average Total Cost } \
\text { (dollars) }
\end{array} \
\hline 75 & 200 & 170 & 370 & 4.93 \
\hline 80 & 200 & 230 & 430 & 5.36 \
\hline 90 & 200 & & & 7.67 \
\hline 100 & 200 & 810 & & \
\hline 115 & 200 & & & 11.8 \
\hline 117 & 200 & 1264 & 1464 &12.5 \
\hline 120 & 200 & 1480 & & \
\hline
\end{array}$
Table 9.3 shows cost data for Lotus Lanterns, a producer of whimsical night lights.
-Refer to Table 9.3.What is the variable cost of production when the firm produces 115 lanterns?

Question

Table 9.3
 $\begin{array}{|c|c|c|c|c|}
\hline \begin{array}{c}
\text { Quantity of } \
\text { Lanterns }
\end{array} & \begin{array}{c}
\text { Fixed Cost } \
\text { (dollars) }
\end{array} & \begin{array}{c}
\text { Variable Cost } \
\text { (dollars) }
\end{array} & \begin{array}{c}
\text { Total Cost } \
\text { (dollars) }
\end{array} & \begin{array}{c}
\text { Average Total Cost } \
\text { (dollars) }
\end{array} \
\hline 75 & 200 & 170 & 370 & 4.93 \
\hline 80 & 200 & 230 & 430 & 5.36 \
\hline 90 & 200 & & & 7.67 \
\hline 100 & 200 & 810 & &  \
\hline 115 & 200 & & & 11.8 \
\hline 117 & 200 & 1264 & 1464 &12.5 \
\hline 120 & 200 & 1480 & & \
\hline
\end{array}$ 
Table 9.3 shows cost data for Lotus Lanterns, a producer of whimsical night lights.
-Refer to Table 9.3.What is the variable cost of production when the firm produces 115 lanterns?

Quizplus · Accepted Answer

The variable cost of production when the firm produces 115 lanterns can be found in the table. The variable cost for 117 lanterns is $1264, and for an additional 2 lanterns, the variable cost increases by $216. Therefore, the variable cost for 115 lanterns would be $1264 – $216 = $1,048. Therefore, the answer is B. 
The best choice is B because it correctly calculates the variable cost of production when the firm produces 115 lanterns.

Table 93 Table 93 Shows Cost Data for Lotus Lanterns, a Producer of Lanterns