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Use the following to answer questions:
-(Table: Cakes) Look at the 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 one, two, or three mixers are shown in the table. Assume that average variable costs do not vary with the quantity of output. How many mixers should Pat buy to get the lowest average total cost if she plans to make 100 cakes?
Fermenting Department
A specialized section within a manufacturing process where biological fermentation of products occurs, such as in beer or pharmaceutical production.
Conversion Costs
The total expenses of direct labor along with manufacturing overhead, which are spent in transforming raw materials into completed goods.
Conversion Costs
The combined costs of direct labor and manufacturing overhead required to transform raw materials into finished products.
First Department
The initial production stage or department in a manufacturing process where raw materials begin their transformation into final products.
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