Question 10

The average total cost of the eighth unit is $14.00.

The average total cost of the eighth unit is calculated by taking the total cost of producing eight units and dividing it by eight. Based on the provided data, this results in an average total cost of $14.00 for the eighth unit.

A) $16.00

This option is incorrect because it suggests a higher average total cost than what has been determined through calculation. The average total cost for the eighth unit must reflect the total costs incurred divided by the number of units, which does not support this value.

B) $8.38

This option is also incorrect as it indicates an average total cost that is significantly lower than the calculated average for the eighth unit. Such a low figure does not align with the expected costs associated with producing eight units.

C) $14.00

This option is correct as it accurately represents the average total cost of the eighth unit. The calculation derived from the total costs confirms that dividing this total by eight yields $14.00, making it the appropriate answer.

D) $14.67

This option is incorrect because it presents an average total cost that is slightly higher than the calculated value. The average total cost for the eighth unit, as determined by the total costs divided by the number of units, does not support this figure.

Conclusion

The correct answer, $14.00, is verified by the total cost calculations and accurately reflects the average total cost of producing eight units. All other options are either too high or too low, failing to represent the average accurately based on the data provided. Thus, option C stands out as the definitive answer.