The Table Below Shows a Pizzeria's Fixed Cost and Variable

question 49

Multiple Choice

The table below shows a pizzeria's fixed cost and variable cost at different levels of output. Pizza's sell for $20 each. $$\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Number of } \\\text { Pizzas Per Day }\end{array} & \begin{array} { c } \text { Fixed Cost } \\\text { (\$/Day) }\end{array} & \begin{array} { c } \text { Variable Cost } \\\text { (\$/Day) }\end{array} \\\hline 0 & 500 & 0 \\\hline 25 & 500 & 150 \\\hline 50 & 500 & 250 \\\hline 75 & 500 & 450 \\\hline 100 & 500 & 850 \\\hline 125 & 500 & 1,650 \\\hline\end{array}$$ When the pizzeria makes 25 pizzas a day, its average fixed cost is ______.

• A)$5
• B)$6
• C)$10
• D)$20

---

Definitions:

Statement Of Cash Flows

Explains how the company’s cash changed from the beginning of the accounting period to the end.

Accounting Period

A specific period of time used for financial reporting purposes, typically a year or quarter.