Asked by Brianna Dames on Jul 27, 2024
Verified
(Table: Cost Data) Use Table: Cost Data.The average variable cost of producing 5 purses is:
A) $10.
B) $38.
C) $48.
D) $190.
Average Variable Cost
The variable costs of production (costs that change with output level) divided by the quantity of output, indicating the average variable cost per unit.
Producing Purses
Producing purses involves the manufacturing and assembling of various materials to create handbags and similar accessories.
- Analyze and calculate average fixed, variable, and total costs.
Verified Answer
ZK
Zybrea KnightAug 02, 2024
Final Answer :
B
Explanation :
To find the average variable cost of producing 5 purses, we need to look at the row where quantity is equal to 5. The variable cost in that row is $190, and the quantity produced is 5. Therefore, the average variable cost is $38 ($190/5).
Learning Objectives
- Analyze and calculate average fixed, variable, and total costs.