Refer to the Table Shown A)$100
B)$110

question 111

Multiple Choice

Refer to the table shown. If the output of bicycles is 4 per week, the average cost of producing each bicycle is: $$\begin{array} { | c | c | } \hline \begin{array} { c } \text { Output } \\\text { (bicycles per week) }\end{array} & \text { Tatal cast (dallars) } \\\hline 1 & 100 \\\hline 2 & 200 \\\hline 3 & 310 \\\hline 4 & 440 \\\hline 5 & 580 \\\hline 6 & 730 \\\hline 7 & 900 \\\hline 8 & 1,200 \\\hline\end{array}$$

• A)$100.
• B)$110.
• C)$120.
• D)$140.

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Definitions:

Sales Revenues

The total amount of money generated from sales of goods or services before any expenses are subtracted.

Variable Costs

Costs that vary directly with the level of production or sales volume, such as raw materials and packaging.

Scattergraph Method

A statistical tool used to plot data points on a graph to identify potential trends, often used in cost accounting to analyze variable costs against a level of activity.

Cost Behaviours

Describes how different types of costs change or remain constant with variations in business operations' volume or scale.