Use the following to answer question:
-(Table: Costs of Birthday Cakes)Use Table: Costs of Birthday Cakes.Assume that fixed costs are $10.What is the average fixed cost of 5 cakes?
A)$1
B)$2
C)$5
D)$10

Question

Use the following to answer question: 
-(Table: Costs of Birthday Cakes)Use Table: Costs of Birthday Cakes.Assume that fixed costs are $10.What is the average fixed cost of 5 cakes?
A)$1 
B)$2 
C)$5 
D)$10

Quizplus · Accepted Answer

The average fixed cost is calculated by dividing the total fixed costs by the number of units produced. Here, the total fixed costs are $10, and the number of cakes is 5. So, $10 / 5 = $2 per cake.

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