-Refer to the Following Table

question 76

Multiple Choice

$\begin{array}{lllllll}&\text { Total Fixed } & \text { Total Variable } & & \text { Average } & \text { Average Variable} & \text { Average }&\text { Marginal } \\\text { Output }&\text { Cost } & \text { Cost } & \text { Total Cost } & \text { Fixed Cost } & \text { Cost } & \text { Total Cost } & \text { Cost }\\1&-&-&-&-&-&-&-\\2&-&-&\$600&-&-&-&-\\3&-&-&-&-&???&-&\$20\\4&-&\$440&-&-&-&-&-\\5&\$500&-&-&-&-&-&-\end{array}$
-Refer to the following table. What is the average variable cost of producing three (3) units of the good?

• A) $80
• B) $120
• C) $40
• D) $20
• E) $420

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Definitions:

Just-In-Time (JIT)

A production strategy that strives to improve a business's return on investment by reducing in-process inventory and associated carrying costs, delivering materials just when they are needed.

Customer Wants

Specific desires or requirements of consumers that businesses aim to meet with their products or services in order to satisfy and retain their clientele.

JIT Environments

Settings or conditions where Just-In-Time inventory management and production practices are implemented to minimize inventory costs and waste.