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Problem 1 0 - 4 Fixed and Variable Costs ( LO 3 ) In a slow year, Deutsche Burgers will produce 2 million hamburgers at

Problem 10-4 Fixed and Variable Costs (LO3)In a slow year, Deutsche Burgers will produce 2 million
hamburgers at a total cost of $3.6 million. In a good year, it can
produce 4.5 million hamburgers at a total cost of $5.1 million.a.What are the fixed costs of hamburger
production?(Do not round intermediate calculations.
Enter your answer in millions rounded to 3 decimal
places.)b.What is the variable cost per
hamburger?(Do not round intermediate calculations.
Round your answer to 2 decimal places.)c.What is the average cost per burger
when the firm produces 1 million hamburgers?(Do not
round intermediate calculations. Round your answer to 2 decimal
places.)d.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.)e.Why is the average cost lower when more
burgers are produced?

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