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 fixed cost of 4 cakes?
A)$48.00
B)$10.00
C)$5.00
D)$2.50

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 fixed cost of 4 cakes?
A)$48.00 
B)$10.00 
C)$5.00 
D)$2.50

Quizplus · Accepted Answer

The average fixed cost is calculated by dividing the total fixed costs by the number of cakes. With fixed costs of $10 and 4 cakes, the average fixed cost is $10/4 = $2.50.

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