The Costs of Producing Sneakers: Finding Average Variable Cost

What is the average variable cost for producing 34 sneakers?

Given the data provided, how can we calculate the average variable cost for producing 34 sneakers?

Answer:

The average variable cost for producing 34 sneakers can be calculated by dividing the total variable cost by the quantity of sneakers produced.

Variable cost is a cost that changes in proportion to the changes in production output. In this case, we are looking to find the average variable cost for producing 34 sneakers. To do this, we first need to identify the total variable cost for producing 34 sneakers from the data table.

From the table, we can see that the total variable cost for producing 34 sneakers is $100. To calculate the average variable cost, we simply divide this total variable cost by the quantity of sneakers produced, which is 34 in this case.

Therefore, the calculation for the average variable cost is as follows:

Average Variable Cost = Total Variable Cost / Quantity

Plugging in the values, we get:

Average Variable Cost = $100 / 34 ≈ $2.94

Therefore, the average variable cost for producing 34 sneakers is approximately $2.94.