Use the Following to Answer Question

question 267

Multiple Choice

Use the following to answer question:
-(Table: Cakes) Use Table: Cakes.Pat is opening a bakery to make and sell special birthday cakes.She is trying to decide how many mixers to purchase.Her estimated fixed and average variable costs if she purchases 1,2,or 3 mixers are shown in the table.Assume that average variable costs do not vary with the quantity of output.If Pat purchases 1 mixer and bakes 200 cakes per day,what is her average total cost?

• A)$5
• B)$15
• C)$200
• D)$1,000

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Definitions:

Service Inventory

Intangible goods in a service operation that cannot be stored or inventoried in the traditional sense, such as available hotel rooms or hours of consulting.

Service Stockout

Occurs when a service provider cannot meet customer demand due to insufficient resources or capacity, leading to customer dissatisfaction.

Service Level

A measure of the quality of a company's service, typically in terms of meeting customer needs or the percentage of customer demands met on time.