Answer the question on the basis of the following cost data. $\begin{array} { | c | c | }
\hline \text { Output } & \text { Total Cost } \
\hline \mathbf { 0 } & \mathbf { \$2 4 } \
\hline 1 & 33 \
\hline 2 & 41 \
\hline 3 & 48 \
\hline 4 & 54 \
\hline 5 & 61 \
\hline 6 & 69 \
\hline
\end{array}$ The total variable cost of producing 5 units is

Question

Answer the question on the basis of the following cost data. $\begin{array} { | c | c | } 
\hline \text { Output } & \text { Total Cost } \
\hline \mathbf { 0 } & \mathbf { \$2 4 } \
\hline 1 & 33 \
\hline 2 & 41 \
\hline 3 & 48 \
\hline 4 & 54 \
\hline 5 & 61 \
\hline 6 & 69 \
\hline
\end{array}$ The total variable cost of producing 5 units is

Quizplus · Accepted Answer

The total variable cost is the total cost minus the fixed cost. The fixed cost is $24 (the cost at 0 output). For 5 units, the total cost is $61, so the variable cost is $61 - $24 = $37.

Answer the Question on the Basis of the Following Cost