Asked by Mohamed Bawazir on Jul 13, 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 100 cakes per day,what is her average fixed cost?
A) $10,000
B) $1,000
C) $15
D) $10
Average Fixed Cost
The constant expenses linked to manufacturing, when divided by the volume of goods produced, reduce as the amount of production expands.
Mixers
Devices used to blend or mix ingredients together in cooking or industrial processes.
- Evaluate and tally up average fixed, variable, and total costs.
- Probe the effect of production rate changes on cost metrics.
Verified Answer
JO
Jaden OteroJul 15, 2024
Final Answer :
D
Explanation :
From the table, we can see that if Pat purchases 1 mixer, her fixed cost is $10,000. Therefore, her average fixed cost per cake if she bakes 100 cakes per day would be:
$10,000 ÷ 100 = $100
Therefore, the correct option is D.
$10,000 ÷ 100 = $100
Therefore, the correct option is D.
Learning Objectives
- Evaluate and tally up average fixed, variable, and total costs.
- Probe the effect of production rate changes on cost metrics.