Asked by Zachariah Andress on Apr 25, 2024
Verified
(Table: Cakes) Use Table: Cakes.Pat is opening a bakery to make and sell special birthday cakes.She is trying to decide how many mixers to purchase.Her estimated fixed and average variable costs if she purchases 1,2,or 3 mixers are shown in the table.Assume that average variable costs do not vary with the quantity of output.If Pat purchases 3 mixers and bakes 200 cakes per day,what is her average fixed cost?
A) $0.05
B) $2.50
C) $5.00
D) $12.50
Average Fixed Cost
The total fixed costs (costs that do not vary with output) divided by the quantity of output produced.
Mixers
Devices or machines used for combining materials or ingredients together in various processes, including cooking or industrial manufacturing.
Cakes
Cakes refer to a sweet baked dessert, often layered or decorated, made from ingredients such as flour, sugar, eggs, and butter.
- Assess the mean values of fixed, variable, and total costs based on specified data.
Verified Answer
LR
Liliana Rangel6 days ago
Final Answer :
D
Explanation :
Average fixed cost is calculated by dividing the total fixed costs by the number of units produced. Without the specific numbers from the table, the correct answer cannot be directly calculated here. However, based on the information given, if Pat purchases 3 mixers and bakes 200 cakes per day, and the correct answer is D, then the average fixed cost would be $12.50 per cake. This implies that the total fixed costs divided by 200 cakes equals $12.50.
Learning Objectives
- Assess the mean values of fixed, variable, and total costs based on specified data.