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:

General Ledger Control Account

A General Ledger Control Account is a summary account that consolidates the total balances of all accounts in a subsidiary ledger, used to maintain integrity in financial reporting.

Subsidiary Ledger

A detailed ledger that contains the individual accounts with a common characteristic, supporting entries recorded in a general ledger.

Accounting Period

The span of time at the end of which a company's financial statements are prepared, typically a quarter or year.

Cost Effectiveness

A measure of the economic efficiency in terms of the cost incurred for a given outcome or result.