Question 31

The average total cost of the eighth unit is 14.67.

To calculate the average total cost of the eighth unit, we find that it amounts to 14.67, which reflects the total cost divided by the number of units produced up to that point.

A) 16

While 16 may seem like a plausible figure, it does not accurately represent the average total cost of the eighth unit, which is determined by the specific costs attributed to the production of that unit.

B) 14.67

This option correctly identifies the average total cost of the eighth unit, as it takes into account the cumulative costs associated with producing the first eight units and divides that by eight.

C) 14

Although 14 is close to the correct value, it underestimates the actual average total cost of the eighth unit, which is established at 14.67, indicating a more precise calculation is necessary.

D) 8.38

This figure is significantly lower than the calculated average total cost of the eighth unit. It does not reflect the total costs incurred for producing eight units, thus making it an incorrect option.

Conclusion

The average total cost of the eighth unit is definitively 14.67, as it accurately represents the costs associated with production divided by the number of units. Other options either overestimate or underestimate this average, demonstrating a lack of alignment with the calculated costs.