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Use the following to answer questions: 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. If Pat purchases one mixer and bakes 100 cakes per day, what is her average fixed cost? A)  $10,000 B)  $1,000 C)  $15 D)  $10
-(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. If Pat purchases one mixer and bakes 100 cakes per day, what is her average fixed cost?


Definitions:

Horizontal Specialization

An organizational structure approach that involves dividing work into specialized tasks or roles based on function or expertise at the same hierarchical level.

Organizational Design

Organizational design is the process of choosing and implementing a structural configuration for an organization.

Small-batch Production

A manufacturing process characterized by the production of small quantities of goods, allowing for flexibility and customization.

Mass Production

The manufacturing of large quantities of standardized products, typically using assembly line techniques and machinery, to achieve economies of scale.

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