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. $$\begin{array} { | c | c | }
\hline \begin{array} { c }
\text { Number of } \
\text { Cakes Per Day }
\end{array} & \begin{array} { c }
\text { Total Cost } \
\text { Per Day }
\end{array} \
\hline 0 & \$ 100 \
\hline 1 & \$ 180 \
\hline 2 & \$ 220 \
\hline 3 & \$ 300 \
\hline 4 & \$ 400 \
\hline 5 & \$ 520 \
\hline 6 & \$ 660 \
\hline
\end{array}$$ When Sarah produces 2 cakes per day, her average variable cost is ______.

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. $$\begin{array} { | c | c | } 
\hline \begin{array} { c } 
\text { Number of } \
\text { Cakes Per Day }
\end{array} & \begin{array} { c } 
\text { Total Cost } \
\text { Per Day }
\end{array} \
\hline 0 & \$ 100 \
\hline 1 & \$ 180 \
\hline 2 & \$ 220 \
\hline 3 & \$ 300 \
\hline 4 & \$ 400 \
\hline 5 & \$ 520 \
\hline 6 & \$ 660 \
\hline
\end{array}$$ When Sarah produces 2 cakes per day, her average variable cost is ______.

Quizplus · Accepted Answer

The total cost for 2 cakes is $220, and the fixed cost (cost at 0 cakes) is $100. The variable cost for 2 cakes is $220 - $100 = $120. The average variable cost is $120 / 2 = $60.

Suppose Sarah Owns a Small Company That Makes Wedding Cakes