Asked by Zachariah Andress on Apr 25, 2024
(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.
Learning Objectives
- Assess the mean values of fixed, variable, and total costs based on specified data.