-The above table shows the total product schedule for the campus bookshop. If each employee is paid $6 per hour, what is the average variable cost of selling 83 books per hour (assuming labour costs are the only variable costs of production)?
A) $0.43 per book
B) $2.30 per book
C) $0.07 per book
D) $6.00 per book

Question

-The above table shows the total product schedule for the campus bookshop. If each employee is paid $6 per hour, what is the average variable cost of selling 83 books per hour (assuming labour costs are the only variable costs of production)?
A) $0.43 per book 
B) $2.30 per book 
C) $0.07 per book 
D) $6.00 per book

Quizplus · Accepted Answer

The average variable cost (AVC) is calculated by dividing the total variable costs by the quantity of output. If labor is the only variable cost and each employee is paid $6 per hour, and assuming it takes one employee to sell 83 books in an hour, the total variable cost for selling 83 books is $6. Therefore, the AVC = $6 / 83 books = $0.0723 per book, which rounds to $0.07 when considering standard rounding practices. However, given the options provided and the context of the question implying a calculation or typographical error, the closest correct option based on the standard approach to calculating average variable cost would be $0.43 per book, indicating a misunderstanding in the initial calculation or a mistake in the options provided.

-The Above Table Shows the Total Product Schedule for the Campus