Use the following to answer questions : $$\begin{array}{l}
\text { Table: Costs of Birthday Cakes }\
\begin{array} { c c }
\hline \text { Quantity of cakes } & \text { Variable cost, } \boldsymbol { V C } \
\hline 0 & 0 \
1 & 15 \
2 & 25 \
3 & 30 \
4 & 38 \
5 & 50 \
6 & 70 \
\hline
\end{array}
\end{array}$$
-(Table: Costs of Birthday Cakes)Use Table: Costs of Birthday Cakes.Assume that fixed costs are $10.What is the average total cost of two cakes?
A) $35.00
B) $25.00
C) $17.50
D) $12.50

Question

Use the following to answer questions : $$\begin{array}{l}
\text { Table: Costs of Birthday Cakes }\
\begin{array} { c c } 
\hline \text { Quantity of cakes } & \text { Variable cost, } \boldsymbol { V C } \
\hline 0 & 0 \
1 & 15 \
2 & 25 \
3 & 30 \
4 & 38 \
5 & 50 \
6 & 70 \
\hline
\end{array}
\end{array}$$
-(Table: Costs of Birthday Cakes)Use Table: Costs of Birthday Cakes.Assume that fixed costs are $10.What is the average total cost of two cakes?
A) $35.00
B) $25.00
C) $17.50
D) $12.50

Quizplus · Accepted Answer

The average total cost (ATC) is calculated by adding the fixed cost (FC) to the variable cost (VC) and dividing by the quantity. For two cakes, ATC = (10 + 25) / 2 = $17.50.

Use the Following to Answer Questions -(Table: Costs of Birthday Cakes)Use Table: Costs of Birthday Cakes