Table 12-11
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 12-11.What is the average variable cost for the month if 6 instructional modules are produced?
A) $180.00
B) $533.33
C) $700.00
D) $713.33

Question

Table 12-11
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 12-11.What is the average variable cost for the month if 6 instructional modules are produced?
A) $180.00 
B) $533.33 
C) $700.00 
D) $713.33

Quizplus · Accepted Answer

To calculate the average variable cost, we need to first determine the total variable cost for producing 6 instructional modules. From the table, we see that the total variable cost for producing 6 modules is $3,200. 
Average variable cost is calculated by dividing total variable cost by the number of units produced. 
Therefore, average variable cost for producing 6 instructional modules is $3,200/6 = $533.33.

Table 12-11 Teacher's Helper Is a Small Company That Has a Subcontract