Answer the question on the basis of the following cost data. $\begin{array} { | c | c | c | }
\hline \text { Output } & \text { Average Fixed Cost } & \text { Average Variable Cost } \
\hline 1 & \$ 50.00 & \$ 100.00 \
\hline 2 & 25.00 & 80.00 \
\hline 3 & 16.67 & 66.67 \
\hline 4 & 12.50 & 65.00 \
\hline 5 & 10.00 & 68.00 \
\hline 6 & 8.37 & 73.33 \
\hline 7 & 7.14 & 80.00 \
\hline 8 & 6.25 & 87.50 \
\hline
\end{array}$ The total cost of four units of output is

Question

Answer the question on the basis of the following cost data. $\begin{array} { | c | c | c | } 
\hline \text { Output } & \text { Average Fixed Cost } & \text { Average Variable Cost } \
\hline 1 & \$ 50.00 & \$ 100.00 \
\hline 2 & 25.00 & 80.00 \
\hline 3 & 16.67 & 66.67 \
\hline 4 & 12.50 & 65.00 \
\hline 5 & 10.00 & 68.00 \
\hline 6 & 8.37 & 73.33 \
\hline 7 & 7.14 & 80.00 \
\hline 8 & 6.25 & 87.50 \
\hline
\end{array}$ The total cost of four units of output is

Quizplus · Accepted Answer

To find the total cost of producing four units of output, we need to add the average fixed cost and average variable cost for four units.

Average Fixed Cost for four units = (12.50+10.00+8.37+7.14)/4 = $9.75

Average Variable Cost for four units = (65.00+68.00+73.33+80.00)/4 = $71.58

Total cost for four units = Average Fixed Cost + Average Variable Cost = $9.75 + $71.58 = $81.33

Therefore, the total cost for four units is $81.33, which is not listed as an answer choice. However, if we multiply this by 4 to find the total cost for four units, we get:

Total cost for four units = 4 x $81.33 = $325.32

The closest answer choice is C) $310, which is the best choice.

Answer the Question on the Basis of the Following Cost