Use the following to answer questions:
-(Table: Costs of Birthday Cakes) Look at the 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 questions: 
-(Table: Costs of Birthday Cakes) Look at the 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 fixed cost is $10, and the number of cakes is 5. So, $10/5 = $2.

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