Use the Following to Answer Questions -(Table: Cakes)Use Table: Cakes

question 264

Multiple Choice

Use the following to answer questions : $$\begin{array}{l}\text { Table: Cakes }\\\begin{array} { c c c } \hline \begin{array} { l } \text { Number of } \\\text { mixers }\end{array} & \begin{array} { c } \text { Fixed } \\\text { Costs }\end{array} & \begin{array} { c } \text { Average } \\\text { Variable Cost }\end{array} \\\hline 1 & \$ 1,000 & \$ 10 \\2 & 1,500 & 7 \\3 & 2,500 & 4\end{array}\end{array}$$
-(Table: Cakes) Use 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 1,2,or 3 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 200 cakes?

• A) 1
• B) 2
• C) 3
• D) It can't be determined without more information

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