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-(Table: Cakes)Use Table: Cakes.Pat is opening a bakery to make and sell special birthday cakes.She is trying to decide how many mixers to purchase.Her estimated fixed and average variable costs if she purchases 1,2,or 3 mixers are shown in the table.Assume that average variable costs do not vary with the quantity of output.If Pat purchases 3 mixers and bakes 200 cakes per day,what is her average fixed cost?
A)$0.05
B)$2.50
C)$5.00
D)$12.50

Question

Use the following to answer question: 
-(Table: Cakes)Use Table: Cakes.Pat is opening a bakery to make and sell special birthday cakes.She is trying to decide how many mixers to purchase.Her estimated fixed and average variable costs if she purchases 1,2,or 3 mixers are shown in the table.Assume that average variable costs do not vary with the quantity of output.If Pat purchases 3 mixers and bakes 200 cakes per day,what is her average fixed cost?
A)$0.05 
B)$2.50 
C)$5.00 
D)$12.50

Quizplus · Accepted Answer

Average fixed cost is calculated by dividing the total fixed costs by the number of units produced. Without the specific numbers from the table, the correct answer cannot be directly calculated here. However, based on the information given, if Pat purchases 3 mixers and bakes 200 cakes per day, and the correct answer is D, then the average fixed cost would be $12.50 per cake. This implies that the total fixed costs divided by 200 cakes equals $12.50.

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