Asked by Carmia Mattox on Jul 15, 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 1 mixer and bakes 200 cakes per day,what is her average fixed cost?
A) $5
B) $10
C) $200
D) $1,000
Average Fixed Cost
The constant expenses associated with manufacturing divided by the amount of product created.
Mixers
Devices used to blend or mix various ingredients together, common in food processing and preparation.
- Investigate and ascertain the mean fixed, variable, and total costs.
- Delve into the influence of production scale alterations on cost statistics.
Verified Answer
KG
Katie GrassaJul 22, 2024
Final Answer :
A
Explanation :
When Pat purchases 1 mixer, her fixed cost is $1,000. If she bakes 200 cakes per day, her average fixed cost is $1,000/200 = $5. Therefore, option A is the best choice.
Learning Objectives
- Investigate and ascertain the mean fixed, variable, and total costs.
- Delve into the influence of production scale alterations on cost statistics.