What is her average total cost, if Pat purchases two mixers and bakes 200 cakes per day?

(Table: Cakes) Examine the table Cakes. Pat is opening a small 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 are constant and do not vary with the quantity of output produced.

Asked by Piydpiper, Last updated: Mar 28, 2024

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2 Answers

D. Ronald, Writer, Austin

Answered Jan 09, 2019

In mathematics word problems, there are certain times when you need to determine which deal is best. This means that is it best to have two, three or four items based on the amount of money you would make when you have that many items of something.

In this case, Pat buys two mixers in order to bake two hundred cakes each day. It would cost fifteen hundred dollars according to the table. The fixed costs refer to the total amount of what it takes to run the business.

The average variable costs refer to the costs that change based on the differences in the output. In this case, the average cost of the two mixes and baking 200 cakes per day would be fourteen dollars and fifty cents.