(Table: Costs of Birthday Cakes) Annie Has a Bakery That

question 28

Multiple Choice

(Table: Costs of Birthday Cakes) Annie has a bakery that specializes in birthday cakes, and her variable costs of producing cakes are shown in the table Costs of Birthday Cakes.Assume that her fixed costs are $10.What is the average fixed cost of 4 cakes?

• A)$48
• B)$10
• C)$5
• D)$2.50

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Definitions:

Promissory Note

A financial document in which one party promises to pay another party a specified sum of money at a defined future point in time or on demand.