The Average Profit in Dollars a That Your Baking Business

question 8

Multiple Choice

The average profit in dollars A that your baking business makes when baking n cakes is given by . How many cakes rounded to whole numbers should you bake in order to have a profit of $300?

• A) 71 cakes
• B) 17 cakes
• C) 17 or 71 cakes

---

Definitions:

MC

Stands for Marginal Cost, which is the increase or decrease in the total cost that arises from producing one additional unit of a product.

Variable Cost

Expenses that vary directly with the volume of products or services a company generates.

Total Cost

Represents the complete sum of all expenses incurred in the production of goods or services, including both fixed and variable costs.

ATC

Average Total Cost, refers to the total cost per unit of output, calculated by dividing the total cost by the quantity of output produced.