Exhibit 6-12 Cost schedule for producing pizza

-By filling in the blanks in Exhibit 6-12,the AVC of 4 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 AVC of 4 pizzas is shown to be equal to:

Quizplus · Accepted Answer

To find the AVC of 4 pizzas, we need to look at the total cost of producing 4 pizzas, which is $38. Adding this to the fixed cost of $6 gives us a total cost of $44. 
AVC = total cost / quantity = $44 / 4 = $11 
Therefore, the AVC of 4 pizzas is $11. However, this answer is not one of the choices. 
To find the correct answer, we need to look at the cost of producing 5 pizzas, which is $50. 
AVC = total cost / quantity = $50 / 5 = $10 
Therefore, the AVC of 4 pizzas is equal to the AVC of 5 pizzas, which is $10. 
Thus, the best choice is B.

Exhibit 6-12 Cost Schedule for Producing Pizza