Table 8-3
Table 8-3 shows cost data for Lotus Lanterns,a producer of whimsical night lights.
-Refer to Table 8-3.What is the variable cost of production when the firm produces 115 lanterns?

Question

Table 8-3
  Table 8-3 shows cost data for Lotus Lanterns,a producer of whimsical night lights.
-Refer to Table 8-3.What is the variable cost of production when the firm produces 115 lanterns?

Quizplus · Accepted Answer

From Table 8-3, when the firm produces 115 lanterns, the variable cost of production is $10.07 per unit. Therefore, the total variable cost of production when the firm produces 115 lanterns is 115 x $10.07 = $1,157. Option B corresponds to this result.

Table 8-3 Table 8-3 Shows Cost Data for Lotus Lanterns,a