Krista's dry-cleaning business incurs $900 per month in fixed costs.Last month her total output was 3 000 kilograms of clothes.This month her total output fell to 2 700 kilograms.This means her average fixed cost _____ by a little more than _____ cents.

Question

Quizplus · Accepted Answer

Average fixed cost = Fixed costs / Total output
Last month: 
Average fixed cost = 900 / 3000 = 0.3 dollars per kilogram 
This month: 
Average fixed cost = 900 / 2700 = 0.3333 dollars per kilogram 
The average fixed cost increased by a little more than 3 cents (0.0333-0.03=0.0033 or 3.33 cents). Therefore, the correct answer is B: increased; 3.33.

Krista's Dry-Cleaning Business Incurs $900 Per Month in Fixed Costs