Scenario 13-19 Doreen's Dairy Produces and Sells Swiss Cheese. Last Year, It

Multiple Choice

Scenario 13-19
Doreen's Dairy produces and sells Swiss cheese. Last year, it produced 7,000 pounds and sold each pound for $6. In producing the 7,000 pounds, the dairy incurred variable costs of $28,000 and a total cost of $40,000.
-Refer to Scenario 13-19. In producing the 7,000 pounds of cheese, the firm's average total cost was

A) $1.71.
B) $4.00.
C) $5.71.
D) $6.00.