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 fixed cost for the month if 9 instructional modules are produced?
A) $108.00
B) $120.00
C) $150.00
D) $811.11

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 fixed cost for the month if 9 instructional modules are produced?
A) $108.00 
B) $120.00 
C) $150.00 
D) $811.11

Quizplus · Accepted Answer

To calculate the average fixed cost, we need to add up all the fixed costs and then divide it by the quantity of instructional modules produced. 
Total fixed cost = $600 + $480 = $1080 
Average fixed cost per module = $1080/9 = $120.00.
So, the correct answer is B, $120.00.

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