In a slow year, Deutsche Burgers will produce 3.3 million hamburgers at a total cost of $4.8 million. In a good year, it can produce 6.6 million hamburgers at a total cost of $6.1 million. a. What are the fixed costs of hamburger production? (Enter your answer in millions rounded to 1 decimal place. Do not round intermediate calculations.) b. What are the variable costs when the firm produces 3.3 million hamburgers? (Enter your answer in millions rounded to 1 decimal place. Do not round intermediate calculations.) c. What is the average cost per burger when the firm produces 1.65 million hamburgers? (Round your answer to 2 decimal places. Do not round intermediate calculations.) d. What is the average cost when the firm produces 3.3 million hamburgers? (Round your answer to 2 decimal places. Do not round intermediate calculations.) a. b. C. d. Fixed cost Variable cost Average cost per burger Average cost per burger million million
In a slow year, Deutsche Burgers will produce 3.3 million hamburgers at a total cost of $4.8 million. In a good year, it can produce 6.6 million hamburgers at a total cost of $6.1 million. a. What are the fixed costs of hamburger production? (Enter your answer in millions rounded to 1 decimal place. Do not round intermediate calculations.) b. What are the variable costs when the firm produces 3.3 million hamburgers? (Enter your answer in millions rounded to 1 decimal place. Do not round intermediate calculations.) c. What is the average cost per burger when the firm produces 1.65 million hamburgers? (Round your answer to 2 decimal places. Do not round intermediate calculations.) d. What is the average cost when the firm produces 3.3 million hamburgers? (Round your answer to 2 decimal places. Do not round intermediate calculations.) a. b. C. d. Fixed cost Variable cost Average cost per burger Average cost per burger million million
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:In a slow year, Deutsche Burgers will produce 3.3 million hamburgers at a total cost of $4.8 million. In a good year, it can produce 6.6
million hamburgers at a total cost of $6.1 million.
a. What are the fixed costs of hamburger production? (Enter your answer in millions rounded to 1 decimal place. Do not round
intermediate calculations.)
b. What are the variable costs when the firm produces 3.3 million hamburgers? (Enter your answer in millions rounded to 1 decimal
place. Do not round intermediate calculations.)
c. What is the average cost per burger when the firm produces 1.65 million hamburgers? (Round your answer to 2 decimal places. Do
not round intermediate calculations.)
d. What is the average cost when the firm produces 3.3 million hamburgers? (Round your answer to 2 decimal places. Do not round
intermediate calculations.)
a.
b.
C.
d.
Fixed cost
Variable cost
Average cost per burger
Average cost per burger
million
million
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