Question
In a slow year, Deutsche Burgers will produce 3.7 million hamburgers at a total cost of $5.2 million. In a good year, it can produce
In a slow year, Deutsche Burgers will produce 3.7 million hamburgers at a total cost of $5.2 million. In a good year, it can produce 7.4 million hamburgers at a total cost of $6.5 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 3.7 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 1.85 million hamburgers? (Round your answer to 2 decimal places. Do not round intermediate calculations.)
D. What is the average cost when the firm produces 3.7 million hamburgers? (Round your answer to 2 decimal places. Do not round intermediate calculations.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started