Maria's Yiros House sells yiros.The cost of ingredients (pita, meat, spices, etc.)to make a yiros is $2.00.Maria pays her employees $60 per day.She also incurs a fixed cost of $120 per day.Calculate Maria's average fixed cost per day when she produces 50 yiros using two workers?
A)$2.00
B)$2.40
C)$4.40
D)$6.80

Question

Quizplus · Accepted Answer

The average fixed cost per day when producing 50 yiros is calculated by dividing the total fixed costs by the number of yiros. The total fixed costs include the daily fixed cost of $120 and the wages for two workers ($60 each), totaling $120 + $120 = $240. Dividing $240 by 50 yiros gives an average fixed cost of $4.80 per yiros, not $2.40 as previously stated. My correction is that the average fixed cost, considering only the fixed cost of $120 per day (not including wages as part of fixed costs for this calculation), is $120 / 50 = $2.40.

Maria's Yiros House Sells Yiros