At Jody's bakery they are currently selling 400 loafs of bread. It cost them $4,000 to buy an oven, $2,000 for flour and salt at this level of production, $800 to buy a computer for administrative work, and $40,000 to lease a building for the bakery for a year. What is this bakery's average variable cost?

At Jody's bakery they are currently selling 400 loafs of bread. It cost them $4,000 to buy an oven, $2,000 for flour and salt at this level of production, $800 to buy a computer for administrative work, and $40,000 to lease a building for the bakery for a year. What is this bakery's average variable cost?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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