How do you use AVERAGE based on values from an IF formula?

This is probably a very simple thing to do, but I haven't managed to find a solution yet. Someone please help!
I have a spreadsheet to calculate grades for my students.
I enter their raw scores, which is then calculated into a percentage (which I then adjust, depending on the raw average).
I then use an IF formula to award a grade between 1 and 10 based on that adjusted percentage.
1AB
ASSESSMENT TASK
Speech 1
Speech 2
Speech 3
TOTAL
FINAL GRADE
Term 1
MAX GRADE
10
10
10
30
ADJ. %
Student A
5
7
7
19
63%
67%
7
Student B
9
7
7
23
77%
81%
8
Student C
9
7
9
25
83%
88%
9
Student D
4
5
5
14
47%
49%
5
Student E
6
9
6
21
70%
74%
7
Student F
7
5
5
17
57%
60%
6
CLASS AVERAGE
6.7
6.7
6.5
19.8
66.1%
69.8%
I want an average here!
66.7%
66.7%
65.0%
I would like to know the average of the grades awarded, but the AVERAGE formula does not work (I'm guessing because the numbers are as a result of a formula, not actual data typed in by me).
Can anyone help please!?

Thanks for your response!
I have simplified the sheet so it contains no split or merged cells, yet still I get the exclamation mark where I want the average. (The exclamation mark says 'Numbers can't be divided by zero'.)
Exam
Skit
Exam
Class Participation
1
2
TOTAL
MAX. MARK
55
30
100
15
200
ADJ. %
MARK
Student A
37
20
84
15
156
78%
72%
7
Student B
39
28
91
15
173
87%
80%
8
Student C
39
28
86
10
163
82%
76%
8
Student D
34
26
92
15
167
84%
78%
8
Student E
38
26
74
10
148
74%
69%
7
CLASS AVERAGE
37.4
25.6
85.4
13.0
161.4
80.7%
75.0%
I guess the basic question is: can you actually use AVERAGE on data that is output by an IF formula?

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Thanks for your response!
I have simplified the sheet so it contains no split or merged cells, yet still I get the exclamation mark where I want the average. (The exclamation mark says 'Numbers can't be divided by zero'.)
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Skit
Exam
Class Participation
1
2
TOTAL
MAX. MARK
55
30
100
15
200
ADJ. %
MARK
Student A
37
20
84
15
156
78%
72%
7
Student B
39
28
91
15
173
87%
80%
8
Student C
39
28
86
10
163
82%
76%
8
Student D
34
26
92
15
167
84%
78%
8
Student E
38
26
74
10
148
74%
69%
7
CLASS AVERAGE
37.4
25.6
85.4
13.0
161.4
80.7%
75.0%
I guess the basic question is: can you actually use AVERAGE on data that is output by an IF formula?

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How do you use AVERAGE based on values from an IF formula?

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