Use the Following to Answer Question

question 284

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 2 mixers and bakes 100 cakes per day,what is her average fixed cost?

• A)$10,000
• B)$1,000
• C)$15
• D)$10

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Definitions:

Production

The process of creating, manufacturing, or enhancing goods and services.

Distribution

In business, distribution refers to the process of getting a product or service from the manufacturer or service provider to the end consumer.

Junk Bond

A high-yield bond with a lower credit rating, reflecting a higher risk of default but offering potentially greater returns.

High-Risk Bond

A bond with a lower credit rating, indicating a higher risk of default, but offering higher potential returns to compensate for this risk.