Use the following to answer questions:
-(Table: Costs of Birthday Cakes) Look at the table Costs of Birthday Cakes. Assume that fixed costs are $10. What is the average total cost of 2 cakes?
A) $35.00
B) $25.00
C) $17.50
D) $12.50

Question

Use the following to answer questions: 
-(Table: Costs of Birthday Cakes) Look at the table Costs of Birthday Cakes. Assume that fixed costs are $10. What is the average total cost of 2 cakes?
A) $35.00 
B) $25.00 
C) $17.50 
D) $12.50

Quizplus · Accepted Answer

To find the average total cost of 2 cakes, add the fixed costs ($10) to the variable costs for 2 cakes (from the table), and then divide by 2. If the variable cost for 2 cakes is $25, the total cost is $35. The average total cost is $35/2 = $17.50.

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