(Table: Costs of Birthday Cakes) Annie has a bakery that specializes in birthday cakes, and her variable costs of producing cakes are shown in the table Costs of Birthday Cakes.Assume that her fixed costs are $10.What is the average total cost of 2 cakes?

Question

Quizplus · Accepted Answer

To find the average total cost, we need to add the fixed cost of $10 to the total variable cost of producing 2 cakes. 
Total variable cost of producing 2 cakes = $7 + $13 = $20 
Average total cost of 2 cakes = (Total variable cost + Fixed cost)/Number of cakes 
= ($20 + $10)/2 = $15 
Therefore, the best choice is C, as it is the only option that is closest to the calculated average total cost.

(Table: Costs of Birthday Cakes) Annie Has a Bakery That