Suppose Sarah owns a small company that makes wedding cakes. The table below shows how Sarah's total cost varies depending on the number of wedding cakes she makes each day. $$\begin{array} { | c | c | }
\hline \begin{array} { c }
\text { Number of } \
\text { Cakes Per Day }
\end{array} & \begin{array} { c }
\text { Total Cost } \
\text { Per Day }
\end{array} \
\hline 0 & \$ 100 \
\hline 1 & \$ 180 \
\hline 2 & \$ 220 \
\hline 3 & \$ 300 \
\hline 4 & \$ 400 \
\hline 5 & \$ 520 \
\hline 6 & \$ 660 \
\hline
\end{array}$$ Sarah's fixed cost is ______ per day.

Question

Suppose Sarah owns a small company that makes wedding cakes. The table below shows how Sarah's total cost varies depending on the number of wedding cakes she makes each day. $$\begin{array} { | c | c | } 
\hline \begin{array} { c } 
\text { Number of } \
\text { Cakes Per Day }
\end{array} & \begin{array} { c } 
\text { Total Cost } \
\text { Per Day }
\end{array} \
\hline 0 & \$ 100 \
\hline 1 & \$ 180 \
\hline 2 & \$ 220 \
\hline 3 & \$ 300 \
\hline 4 & \$ 400 \
\hline 5 & \$ 520 \
\hline 6 & \$ 660 \
\hline
\end{array}$$ Sarah's fixed cost is ______ per day.

Quizplus · Accepted Answer

Fixed cost is the part of total cost that does not vary with the quantity of output produced. Looking at the table, we can see that Sarah's total cost is $100 when she makes 0 cakes per day. This means that $100 is her fixed cost, since it remains constant regardless of the number of cakes she makes. Therefore, the answer is (C) $100.

Suppose Sarah Owns a Small Company That Makes Wedding Cakes