The table below shows a pizzeria's fixed cost and variable cost at different levels of output. Pizza's sell for $20 each. $$\begin{array} { | c | c | c | }
\hline \begin{array} { c }
\text { Number of } \
\text { Pizzas Per Day }
\end{array} & \begin{array} { c }
\text { Fixed Cost } \
\text { (\$/Day) }
\end{array} & \begin{array} { c }
\text { Variable Cost } \
\text { (\$/Day) }
\end{array} \
\hline 0 & 500 & 0 \
\hline 25 & 500 & 150 \
\hline 50 & 500 & 250 \
\hline 75 & 500 & 450 \
\hline 100 & 500 & 850 \
\hline 125 & 500 & 1,650 \
\hline
\end{array}$$ When the pizzeria makes 50 pizzas a day, its average total cost is ______.

Question

The table below shows a pizzeria's fixed cost and variable cost at different levels of output. Pizza's sell for $20 each. $$\begin{array} { | c | c | c | } 
\hline \begin{array} { c } 
\text { Number of } \
\text { Pizzas Per Day }
\end{array} & \begin{array} { c } 
\text { Fixed Cost } \
\text { (\$/Day) }
\end{array} & \begin{array} { c } 
\text { Variable Cost } \
\text { (\$/Day) }
\end{array} \
\hline 0 & 500 & 0 \
\hline 25 & 500 & 150 \
\hline 50 & 500 & 250 \
\hline 75 & 500 & 450 \
\hline 100 & 500 & 850 \
\hline 125 & 500 & 1,650 \
\hline
\end{array}$$ When the pizzeria makes 50 pizzas a day, its average total cost is ______.

Quizplus · Accepted Answer

To calculate the average total cost, we need to find the total cost and divide by the number of pizzas produced. Total cost is the sum of fixed cost and variable cost.

When 50 pizzas are produced: 
Fixed cost = $500 
Variable cost = $250 
Total cost = $500 + $250 = $750 
Average Total Cost = Total Cost / Number of Pizzas = $750 / 50 = $15

Therefore, the answer is C.

The Table Below Shows a Pizzeria's Fixed Cost and Variable