Table 13-1
Measures of Cost for Splashy Cardboard Kayak Factory.

-Refer to Table 13-1. The average variable cost of producing 3 kayaks is:

Question

Table 13-1
Measures of Cost for Splashy Cardboard Kayak Factory.
 
-Refer to Table 13-1. The average variable cost of producing 3 kayaks is:

Quizplus · Accepted Answer

To calculate the average variable cost, we need to divide the total variable cost by the number of kayaks produced. 
Total variable cost for producing 3 kayaks = $7. 
Average variable cost per kayak = $7/3 = $2.33. Therefore, the best choice is B.

Table 13-1 Measures of Cost for Splashy Cardboard Kayak Factory