Asked by hannah pyron on Jul 14, 2024

verifed

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 2 mixers 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

When you divide the unchanging production costs by the total units produced, this value diminishes as the level of production goes up.

Mixers

Devices or software used to combine, adjust, and control the levels of different audio signals.

  • Analyze and figure out the average fixed, variable, and comprehensive expenses.
  • Unravel how production magnitude affects cost-related figures.
verifed

Verified Answer

DC
David ChangJul 15, 2024
Final Answer :
C
Explanation :
If Pat purchases 2 mixers and bakes 100 cakes per day, her total fixed cost would be $3,000, and her total variable cost would be $1,500 ($15 average variable cost x 100 cakes). Therefore, her total cost would be $4,500.

To find her average fixed cost, we divide the total fixed cost by the quantity of output:
Average fixed cost = Total fixed cost / Quantity of output
Average fixed cost = $3,000 / 100 cakes
Average fixed cost = $30/cake

Therefore, Pat's average fixed cost per cake is $30, which is answer choice C.