In a slow year, Deutsche Burgers will produce 4.0 million hamburgers at a total cost of $5.5 million. In a good year, it can produce 8.0 million hamburgers at a total cost of $6.8 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 4.0 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 2.00 million hamburgers? (Round your answer to 2 decimal places. Do not round intermediate calculations.) 1. What is the average cost when the firm produces 4.0 million hamburgers? (Round your answer to 2 decimal places. Do not round intermediate calculations.) a. Fixed cost Variable cost $ $ 4.2 million 1.3 million
In a slow year, Deutsche Burgers will produce 4.0 million hamburgers at a total cost of $5.5 million. In a good year, it can produce 8.0 million hamburgers at a total cost of $6.8 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 4.0 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 2.00 million hamburgers? (Round your answer to 2 decimal places. Do not round intermediate calculations.) 1. What is the average cost when the firm produces 4.0 million hamburgers? (Round your answer to 2 decimal places. Do not round intermediate calculations.) a. Fixed cost Variable cost $ $ 4.2 million 1.3 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 4.0 million hamburgers at a total cost of $5.5 million. In a good year, it can produce 8.0
million hamburgers at a total cost of $6.8 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 4.0 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 2.00 million hamburgers? (Round your answer to 2 decimal places.
Do not round intermediate calculations.)
d. What is the average cost when the firm produces 4.0 million hamburgers? (Round your answer to 2 decimal places. Do not round
intermediate calculations.)
a.
Fixed cost
b. Variable cost
c. Average cost per burger
d. Average cost per burger
$
$
$
$
4.2 million
1.3 million
2.43
1.38
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