-The above table shows the total product schedule for the campus book store. If each employee is paid $6 per hour, what is the average variable cost of selling 83 books per hour (assuming labor costs are the only variable costs of production)?
A) $0.43 per book
B) $0.07 per book
C) $2.30 per book
D) $6.00 per book

Question

-The above table shows the total product schedule for the campus book store. If each employee is paid $6 per hour, what is the average variable cost of selling 83 books per hour (assuming labor costs are the only variable costs of production)?
A) $0.43 per book 
B) $0.07 per book 
C) $2.30 per book 
D) $6.00 per book

Quizplus · Accepted Answer

The average variable cost is the total variable cost divided by the number of units produced. In this case, the only variable cost is labor, and the total labor cost is $6 per hour. Since 83 books are sold per hour, the average variable cost is $6 / 83 = $0.07 per book.

-The Above Table Shows the Total Product Schedule for the Campus