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Table 8-7 Table 8-7 Shows Cost Data for Lotus Lanterns, a Producer

Question 139

Multiple Choice

Table 8-7
 Quantity of  Lanterns  Fixed Cost  (dollars)   Variable Cost  (dollars)   Total Cost  (dollars)   Average Total  Cost (dollars)  752001703704.93802002304305.36902007.6710020081011.811520012.5117200126414641202001480\begin{array}{|c|c|c|c|c|}\hline \begin{array}{c}\text { Quantity of } \\\text { Lanterns }\end{array} & \begin{array}{c}\text { Fixed Cost } \\\text { (dollars) }\end{array} & \begin{array}{c}\text { Variable Cost } \\\text { (dollars) }\end{array} & \begin{array}{c}\text { Total Cost } \\\text { (dollars) }\end{array} & \begin{array}{c}\text { Average Total } \\\text { Cost (dollars) }\end{array} \\\hline 75 & 200 & 170 & 370 & 4.93 \\\hline 80 & 200 & 230 & 430 & 5.36 \\\hline 90 & 200 & & & 7.67 \\\hline 100 & 200 & 810 & & 11.8 \\\hline 115 & 200 & & & 12.5 \\\hline 117 & 200 & 1264 & 1464 & \\\hline 120 & 200 & 1480 & & \\\hline\end{array} Table 8-7 shows cost data for Lotus Lanterns, a producer of whimsical night lights.
-Refer to Table 8-7.What is the average total cost of production when the firm produces 120 lanterns?


A) $1,680
B) $72
C) $14
D) $12.3

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