Exhibit 6-12 Cost Schedule for Producing Pizza In Exhibit 6-12, the Marginal Cost of Producing the 3rd

question 41

Multiple Choice

Exhibit 6-12 Cost schedule for producing pizza $$\begin{array} { | c | c | c | c | } \hline \text { Pizzas } & \begin{array} { c } \text { Fixed } \\\text { Cost }\end{array} & \begin{array} { c } \text { Variable } \\\text { Cost }\end{array} & \begin{array} { c } \text { Total } \\\text { Cost }\end{array} \\\hline 0 & \$ & \$ & \$ \\\hline 1 & & & 48 \\\hline 2 & & 17 & \\\hline 3 & & 27 & \\\hline 4 & & & 78 \\\hline 5 & 40 & & \\\hline 6 & & 64 & \\\hline 7 & & 80 & \\\hline\end{array}$$ In Exhibit 6-12, the marginal cost of producing the 3rd pizza

• A) is higher than the average total cost of 3 pizzas, so the average total cost curve is increasing at a quantity of 3 pizzas.
• B) is lower than the average total cost of 3 pizzas, so the average total cost curve is decreasing at a quantity of 3 pizzas.
• C) is equal to the average total cost of 3 pizzas, so the average total cost curve is minimized at a quantity of 3 pizzas.
• D) is higher than the average fixed cost of 3 pizzas, so the average fixed cost curve is increasing at a quantity of 3 pizzas.

---

Definitions:

Iterative Process

A procedure in which repeated sequences or cycles of operations are carried out to refine results or solutions.

Predictive Modeling

The use of statistics and modeling techniques to predict future events or outcomes based on historical data.

Share Of Wallet

The proportion of a customer's total spending that is captured by a business.

Service Performance

The execution and delivery of a service, often evaluated based on criteria like efficiency, quality, and customer satisfaction.