Q1

In a slow year, Deutsche Burgers will produce 3.2 million hamburgers at a total cost of $4.4 million. In a good year, it can produce 4.4 million hamburgers at a total cost of $5 million. a. What are the xed costs ofhamburger 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 rm 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? a b. Variable cost Average cost :1. Average cost per burger 3 Why is the average cost lower when more burgers are produced? A project currently generates sales of $5 million, variable costs equal 50% of sales, and fixed costs are $1.0 million. The firm's tax rate is 40%. Assume all sales and expenses are cash items. a. What are the effects on cash flow, if sales increase from $5 million to $5.5 million? (Input the amount as positive value. Enter your answer in dollars not in millions.) Cash flow byb. What are the effects on cash flow, if variable costs increase to 55% of sales? (Input the amount as positive value. Enter your answer in dollars not in millions.) Cash flow byThe following estimates have been prepared for a project: Fixed costs: $18,000 Depreciation: $12,000 Sales price per unit: $4 Accounting break-even: 60,000 units What must be the variable cost per unit? (Round your answer to 2 decimal places.) Variable cost per unitDime a Dozen Diamonds mal