Table 76 -Refer to Table 7

question 97

Multiple Choice

Table 7.6
$$\begin{array} { | c | c | c | c | } \hline \text { Cakes } & \text { Variable Costs } & \text { Fixed Costs } & \text { Total Costs } \\\hline 0 & & \$ 10 & \\\hline 1 & \$ 2 & & \\\hline 2 & \$ 3 & & \\\hline 3 & & & \$ 16 \\\hline 4 & \$ 9 & & \\\hline 5 & \$ 10 & & \$ 20 \\\hline\end{array}$$
-Refer to Table 7.6,which shows the costs of birthday cakes at a bakery.What is the average variable cost of 2 cakes?

• A)$2
• B)$2.5
• C)$6
• D)$1.50
• E)$13

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Definitions:

Restocking Costs

Expenses associated with replenishing inventory or stock levels in a business, including purchasing, shipping, and handling costs.

Carrying Costs

The aggregate amount spent on inventory upkeep, which covers costs related to storage, insurance premiums, and tax payments.

Opportunity Costs

The cost of an alternative that must be forgone in order to pursue a certain action. Put another way, the benefits you could have received by taking an alternative action.

Inventory

Goods and materials that a business holds for the ultimate goal of resale or processing.