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Question
Table 11-7| Quantity of Lanterns | Fixed Cost (dollars) | Variable Cost (dollars) | Total Cost (dollars) | Average Total Cost (dollars) |
| 75 | 200 | 170 | 370 | 4.93 |
| 80 | 200 | 230 | 430 | 5.36 |
| 90 | 200 | 7.67 | ||
| 100 | 200 | 810 | ||
| 115 | 200 | 11.8 | ||
| 117 | 200 | 1264 | 1464 | 12.5 |
| 120 | 200 | 1480 |
Refer to Table 11-7. What is the average total cost of production when the firm produces 120 lanterns?
A) $1,680
B) $72
C) $14
D) $12.3
Answer
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