Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

e. Why is the average cost lower when more burgers are produced? a) The fixed costs are spread across more burgers. b) Variable costs are

image text in transcribed

e. Why is the average cost lower when more burgers are produced?

a) The fixed costs are spread across more burgers.

b) Variable costs are lower per burger.

c) Fixed costs are constant per burger.

In a slow year, Deutsche Burgers will produce 2.800 million hamburgers at a total cost of $3.400 million. In a good year, it can produce 4.800 million hamburgers at a total cost of $4.600 million. a. What are the fixed costs of hamburger production? (Do not round intermediate calculations. Enter your answer in millions rounded to 1 decimal place.) Fixed cost million b. What is the variable cost per hamburger? (Do not round intermediate calculations. Round your answer to 2 decimal places.) per Variable cost burger c. What is the average cost per burger when the firm produces 2 million hamburgers? (Do not round intermediate calculations. Round your answer to 2 decimal places.) per burger Average cost d. What is the average cost per burger when the firm produces 3 million hamburgers? (Do not round intermediate calculations. Round your answer to 2 decimal places.) per Average cost

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Complete Guide To Property Finance

Authors: Richard W J Brown

1st Edition

1739832027, 978-1739832025

More Books

Students also viewed these Finance questions

Question

=+ (d) Show that Y ,, Y2, ... are independent.

Answered: 1 week ago

Question

What is the effect of word war second?

Answered: 1 week ago