Question
In a slow year, Deutsche Burgers will produce 2.1 million hamburgers at a total cost of $3.6 million. In a good year, it can produce
In a slow year, Deutsche Burgers will produce 2.1 million hamburgers at a total cost of $3.6 million. In a good year, it can produce 4.2 million hamburgers at a total cost of $4.6 million.
A.) What are the fixed costs of hamburger production? (Enter your answer in millions rounded to 1 decimal place. Do not round intermediate calculations.)
B.) What are the variable costs when the firm produces 2.1 million hamburgers? (Enter your answer in millions rounded to 1 decimal place. Do not round intermediate calculations.)
C.) What is the average cost per burger when the firm produces 1.05 million hamburgers? (Round your answer to 2 decimal places. Do not round intermediate calculations.)
D.) What is the average cost when the firm produces 2.1 million hamburgers? (Round your answer to 2 decimal places. Do not round intermediate calculations.)
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Analytical Finance Volume I
Authors: Jan R. M. Röman
1st Edition
3319340263, 978-3319340265
