Table 6.7
$$\begin{array} { | c | c | c | c | c | }
\hline \begin{array} { c }
\text { Quantity of } \
\text { Lanterns }
\end{array} & \begin{array} { c }
\text { Fixed Cost } \
\text { (dollars) }
\end{array} & \begin{array} { c }
\text { Variable Cost } \
\text { (dollars) }
\end{array} & \begin{array} { c }
\text { Total Cost } \
\text { (dollars) }
\end{array} & \begin{array} { c }
\text { Average } \
\text { Total Cost } \
\text { (dollars) }
\end{array} \
\hline 75 & 200 & 170 & 370 & 4.93 \
\hline 80 & 200 & 230 & 430 & 5.36 \
\hline 90 & 200 & & & 7.67 \
\hline 100 & 200 & 810 & & \
\hline 115 & 200 & & & 11.8 \
\hline 117 & 200 & 1264 & 1464 & 12.5 \
\hline 120 & 200 & 1480 & & \
\hline
\end{array}$$ Table 6.7 shows cost data for Lotus Lanterns, a producer of whimsical night lights.
-Refer to Table 6.7.The variable cost of production when the firm produces 115 lanterns is ________.

Question

Table 6.7
 $$\begin{array} { | c | c | c | c | c | } 
\hline \begin{array} { c } 
\text { Quantity of } \
\text { Lanterns }
\end{array} & \begin{array} { c } 
\text { Fixed Cost } \
\text { (dollars) }
\end{array} & \begin{array} { c } 
\text { Variable Cost } \
\text { (dollars) }
\end{array} & \begin{array} { c } 
\text { Total Cost } \
\text { (dollars) }
\end{array} & \begin{array} { c } 
\text { Average } \
\text { Total Cost } \
\text { (dollars) }
\end{array} \
\hline 75 & 200 & 170 & 370 & 4.93 \
\hline 80 & 200 & 230 & 430 & 5.36 \
\hline 90 & 200 & & & 7.67 \
\hline 100 & 200 & 810 & & \
\hline 115 & 200 & & & 11.8 \
\hline 117 & 200 & 1264 & 1464 & 12.5 \
\hline 120 & 200 & 1480 & & \
\hline
\end{array}$$ Table 6.7 shows cost data for Lotus Lanterns, a producer of whimsical night lights.
-Refer to Table 6.7.The variable cost of production when the firm produces 115 lanterns is ________.

Quizplus · Accepted Answer

To find the variable cost of production when the firm produces 115 lanterns, we need to look at the row where the production quantity is 115. From the table, we can see that the variable cost per unit is $10.71, and the total variable cost for 115 units is $1,236. Therefore, the variable cost of production when the firm produces 115 lanterns is $1,157 (Option B).

Table 67 Table 67 Shows Cost Data for Lotus Lanterns, a Producer of |