Using the following table, notice that at sales of 60 bagels per hour the marginal cost increases from $.03 to $.08 and the average cost increases from $.35 per bagel to $.43 per bagel. This illustrates that when marginal cost or the cost of the next bagel increases the average cost per bagel Analysis of Prot (Unit Price = 5.50 Ear Bagel) Quantity Total Average Average Average Marginal Prot per of Bagels Cost Fixed Variable Total Cost per hour per hour Cost per Cost per Cost per Bagel Bagel Bagel Bagel 0 55.00 - - - - $5.00 10 $7.50 $0.50 $0.25 $0.75 $0.25 $2.50 20 $10.00 $0.25 $0.25 $0.50 0.08 $0.00 30 $12.50 $0.17 $0.25 $0.42 0.04 52.50 40 $15.00 $0.13 $0.25 $0.38 0.03 $5.00 50 $17.50 $0.10 $0.25 $0.35 0.03 $7.50 60 $26.00 $0.18 $0.25 $0.43 0.08 $4.00 70 $28.50 50.18 80.25 50.40 0.03 $6.50 80 $31.00 $0.14 $0.25 $0.38 0.02 $9.00 decreases increases may go up or down