Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In a slow year, Deutsche Burgers will produce 4 million hamburgers at a total cost of $ 4 . 9 million. In a good year,

In a slow year, Deutsche Burgers will produce 4 million hamburgers at a total cost of $4.9 million. In a good year, It can produce 4.6
million hamburgers at a total cost of $5.2 million.
a. What are the fixed costs of hamburger production?
Note: Do not round Intermedlate calculations. Enter your answer In mlllions rounded to 3 decimal places.
b. What is the varlable cost per hamburger?
Note: Do not round Intermedlate calculations. Round your answer to 2 decimal places.
c. What is the average cost per burger when the firm produces 2 million hamburgers?
Note: Do not round Intermedlate calculations. Round your answer to 2 decimal places.
d. What is the average cost per burger when the firm produces 3 million hamburgers?
Note: Do not round Intermedlate calculatlons. Round your answer to 2 declmal places.
e. Why is the average cost lower when more burgers are produced?
Answer is complete but not entirely correct.
image text in transcribed

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

Step: 3

blur-text-image

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

Get Rich With Dividends

Authors: Marc Lichtenfeld

3rd Edition

1119985552, 978-1119985556

More Books

Students also viewed these Finance questions

Question

Is there a clear hierarchy of points in my outline?

Answered: 1 week ago