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 variable cost for the month if 6 instructional modules are produced?
A)$180.00
B)$533.33
C)$700.00
D)$713.33

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 variable cost for the month if 6 instructional modules are produced?
A)$180.00 
B)$533.33 
C)$700.00 
D)$713.33

Quizplus · Accepted Answer

To calculate the average variable cost, we need to add up all the variable costs (labor, materials, and supplies) for producing 6 instructional modules. From the table, we see that the variable cost per module is $300, so the total variable cost for producing 6 modules is 6 x $300 = $1800.

The average variable cost is then calculated by dividing the total variable cost by the number of modules produced:

$1800 ÷ 6 = $300

Therefore, the average variable cost for producing 6 instructional modules is $300.

So, the best answer choice is B, with the explanation that the average variable cost for producing 6 instructional modules is $300.

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