Use the Following to Answer Question

question 303

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 3 mixers and bakes 200 cakes per day,what is her average fixed cost?

• A)$0.05
• B)$2.50
• C)$5.00
• D)$12.50

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Definitions:

Specific Customer Needs

Particular requirements or desires of consumers that businesses aim to meet with their products or services.

Competitive Advantage

The attributes that allow an organization to outperform its competitors, such as cost structure, product offerings, brand, and service.

Competitive Scope

The breadth and scale of competition a company faces, ranging from local to global markets and across various segments.

Cost Leadership

A business strategy aiming to achieve the lowest operational costs in an industry to offer products or services at a lower price than competitors.