Exhibit 7-2 Cost Schedule for Pizza Production -Exhibit 7-2 Shows the Labor, Energy, and Materials Cost of c

Exhibit 7-2 Cost schedule for pizza production $$\begin{array} { | c | c | c | c | } \hline \text { Pizzas } & \begin{array} { c } \text { Labor } \\\text { Cost }\end{array} & \begin{array} { c } \text { Energy } \\\text { Cost }\end{array} & \begin{array} { c } \text { Materials } \\\text { Cost }\end{array} \\\hline 0 & \$ 10 & \$ 0 & \$ 0 \\1 & 10 & 12 & 4 \\2 & 24 & 22 & 8 \\3 & 40 & 30 & 12 \\4 & 60 & 36 & 16 \\5 & 90 & 40 & 20 \\\hline\end{array}$$
-Exhibit 7-2 shows the labor, energy, and materials cost of making various quantities of pizzas. The table shows that the labor cost of making pizzas will:

A) increase at a decreasing rate.
B) decrease at a decreasing rate.
C) decrease at an increasing rate.
D) increase at an increasing rate.
E) increase at a constant rate.

Correct Answer:

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