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 5 cakes?
A) $110
B) $60
C) $12
D) $2

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 5 cakes?
A) $110 
B) $60 
C) $12 
D) $2

Quizplus · Accepted Answer

To find the average total cost, add the fixed costs to the total variable costs for 5 cakes, then divide by the number of cakes. If fixed costs are $10 and the total cost for 5 cakes is $50, the average total cost is ($10 + $50) / 5 = $12.

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