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Ingredients to make 3 dozen cookies: One 16oz Box of Sugar $1.58 One 12 oz bag of chocolate chips $2.62 One 2 lb. bag of
Ingredients to make 3 dozen cookies:
One 16oz Box of Sugar | $1.58 |
One 12 oz bag of chocolate chips | $2.62 |
One 2 lb. bag of flour | $1.16 |
One dozen eggs | $5.22 |
- A fixed cost of $30 to rent a kitchen with an oven for a day
- Assume in an hour you can bake 2 dozen cookies and that the cost of your time is $10 an hour
Calculate the average total cost, average variable cost, average fixed cost, and marginal cost for baking one dozen, two dozen, three dozen, four dozen, five dozen, six dozen, seven dozen, eight dozen, nine dozen, and ten dozen cookies.
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