Question
In a slow year, Deutsche Burgers will produce 2.9 million hamburgers at a total cost of $4.3 million. In a good year, it can produce
In a slow year, Deutsche Burgers will produce 2.9 million hamburgers at a total cost of $4.3 million. In a good year, it can produce 4.9 million hamburgers at a total cost of $5.5 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.) |
Variable cost = | $ per 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.) |
Average cost = | $ per burger |
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.) |
Average cost = | $ per burger |
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