Table 13-9
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 13-9.What is the average variable cost for the month if 6 instructional modules are produced?

Question

Table 13-9
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 13-9.What is the average variable cost for the month if 6 instructional modules are produced?

Quizplus · Accepted Answer

To calculate the average variable cost, we need to first add up all the variable costs for producing 6 instructional modules:
- Paper and Printing costs: $320 + $240 + $160 + $640 + $480 + $320 = $2,160
- Shipping and Handling costs: $90
- Hourly wages: $25 x 12 hours per module x 6 modules = $1,800

Total Variable Cost = $2,160 + $90 + $1,800 = $4,050
Average Variable Cost = Total Variable Cost / Number of Modules Produced = $4,050 / 6 = $675 per module

Therefore, the average variable cost for producing 6 instructional modules is $533.33.

Table 13-9 Teacher's Helper Is a Small Company That Has a Subcontract