Quantity of Fixed Cost Variable Cost
Lanterns (dollars) (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
Table 11-7 shows cost data for Lotus Lanterns, a producer of whimsical night lights.
Refer to Table 11-7. What is the variable cost of production when the firm produces 115 lanterns?
A) $1,556
B) $1,157
C) $956
D) $10.05