Table 13-13
Teacher's Helper is a small company that has a subcontract to produce instructional materials for disabled children in public school districts. The owner rents several small rooms in an office building in the suburbs for $600 a month and has leased computer equipment that costs $480 a month.
-Refer to Table 13-13. What is the average fixed cost for the month if 9 instructional modules are produced?
A)$108.00
B)$120.00
C)$150.00
D)$811.11

Question

Table 13-13
Teacher's Helper is a small company that has a subcontract to produce instructional materials for disabled children in public school districts. The owner rents several small rooms in an office building in the suburbs for $600 a month and has leased computer equipment that costs $480 a month. 
-Refer to Table 13-13. What is the average fixed cost for the month if 9 instructional modules are produced?
A)$108.00 
B)$120.00 
C)$150.00 
D)$811.11

Quizplus · Accepted Answer

To calculate the average fixed cost, we need to divide the total fixed cost by the quantity of output. From the table, we can see that the total fixed cost is $1080 ($600 rent + $480 leased equipment) and the quantity of output is 9 instructional modules.

Average fixed cost = total fixed cost / quantity of output 
= $1080 / 9 
= $120.00

Therefore, the average fixed cost for the month if 9 instructional modules are produced is $120.00. The correct choice is B.

Table 13-13 Teacher's Helper Is a Small Company That Has a Subcontract