Asked by Danielle Szajdek on Apr 25, 2024
Verified
(Table: Costs of Birthday Cakes) Use Table: Costs of Birthday Cakes.Assume that fixed costs are $10.What is the average fixed cost of 2 cakes?
A) $5
B) $10
C) $25
D) $30
Average Fixed Cost
Production's unchanging overheads split by the volume of goods produced.
Fixed Costs
Expenses that do not change with the level of output or sales, such as rent or salaries.
Birthday Cakes
Specifically made or purchased cakes to celebrate individuals' birthdays, often considered for their cultural significance and economic impact on the baking industry.
- Calculate average total, average variable, and average fixed costs using provided information.
Verified Answer
MA
MAHNOOR AHMED7 days ago
Final Answer :
A
Explanation :
The average fixed cost of producing 2 cakes, when the fixed cost is $10, is calculated by dividing the total fixed cost by the number of cakes. So, $10 / 2 = $5.
Learning Objectives
- Calculate average total, average variable, and average fixed costs using provided information.
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