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

question 84

Multiple Choice

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

• A) $420
• B) $32
• C) $11.1
• D) $8.1

---

Definitions:

Collaborative

Involving two or more parties working together towards a common goal, often seen in partnerships between businesses to enhance performance or innovation.

Objective Rating Systems

Systems or methods used to evaluate or assess performance quantitatively, based on impartial and measurable criteria.

Evaluation

The systematic assessment of processes, systems, or organizations to measure performance, effectiveness, or value.

Rating Systems

Mechanisms or scales used to evaluate or grade a certain attribute or performance of entities, products, or services.