Use the following to answer question:
-(Table: Costs of Birthday Cakes)Use Table: Costs of Birthday Cakes.Assume that fixed costs are $10.What is the average variable cost of 4 cakes?
A)$38.00
B)$10.00
C)$9.50
D)$8.00

Question

Use the following to answer question: 
-(Table: Costs of Birthday Cakes)Use Table: Costs of Birthday Cakes.Assume that fixed costs are $10.What is the average variable cost of 4 cakes?
A)$38.00 
B)$10.00 
C)$9.50 
D)$8.00

Quizplus · Accepted Answer

Looking at the table, we can see that the variable cost for 4 cakes is $38. Therefore, the average variable cost for each cake would be $38/4 = $9.50.

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