Asked by khuong huynh on May 12, 2024

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(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 total cost?

A) $50.00
B) $12.50
C) $16.50
D) $800.00

Average Total Cost

The total cost per unit of output, found by dividing the total cost by the quantity of output.

Mixers

Devices or machines used to combine ingredients together into a homogeneous mixture.

Cakes

Baked goods that are typically sweet, often layered or decorated, and served on special occasions like birthdays and weddings.

  • Estimate the average fixed, variable, and aggregate costs utilizing provided data.
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VS
Vinnette SmithMay 19, 2024
Final Answer :
C
Explanation :
To find the average total cost, we need to add the fixed cost to the average variable cost per cake and then divide by the total number of cakes produced.
For Pat's bakery, if she purchases 3 mixers and bakes 200 cakes per day, her total variable cost would be $300 ($1.50 per cake x 200 cakes x 3 mixers).
Her total cost would be the sum of the fixed cost and the variable cost, which is $800 + $300 = $1,100.
So her average total cost would be $1,100 ÷ 200 = $16.50 per cake.
Therefore, the best choice for Pat is to purchase 3 mixers.