Jerry's ice-cream parlor is hosting Andrew's birthday party in one week.Overall,25 to 30 people will attend the party and Andrew's costs are as follows: $200 for rent,$150 for the cake,$3 per person for customized invitations,$15 per person for the meal,$50 for decorations,and $8 per person for party favors.For simplicity,assume that Andrew is considered one of the guests and he receives an invitation too.Assuming that 25 people attend the party,the average variable cost of the party is:
A) $16
B) $1,050
C) $42
D) $350
E) $26

Question

Quizplus · Accepted Answer

The average variable cost per person is calculated by adding the variable costs per person ($3 for invitations, $15 for the meal, and $8 for party favors) and dividing by the number of people. Total variable cost per person is $26.

Jerry's Ice-Cream Parlor Is Hosting Andrew's Birthday Party in One