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

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 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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