In a slow year, Deutsche Burgers will produce 3.3 million hamburgers at a total cost of $4.8 million. In a good year, it can produce 6.6 million hamburgers at a total cost of $6.1 million. a. What are the fixed costs of hamburger production? (Enter your answer in millions rounded to 1 decimal place. Do not round intermediate calculations.) b. What are the variable costs when the firm produces 3.3 million hamburgers? (Enter your answer in millions rounded to 1 decimal place. Do not round intermediate calculations.) c. What is the average cost per burger when the firm produces 1.65 million hamburgers? (Round your answer to 2 decimal places. Do not round intermediate calculations.) d. What is the average cost when the firm produces 3.3 million hamburgers? (Round your answer to 2 decimal places. Do not round intermediate calculations.) a. b. C. d. Fixed cost Variable cost Average cost per burger Average cost per burger million million
In a slow year, Deutsche Burgers will produce 3.3 million hamburgers at a total cost of $4.8 million. In a good year, it can produce 6.6 million hamburgers at a total cost of $6.1 million. a. What are the fixed costs of hamburger production? (Enter your answer in millions rounded to 1 decimal place. Do not round intermediate calculations.) b. What are the variable costs when the firm produces 3.3 million hamburgers? (Enter your answer in millions rounded to 1 decimal place. Do not round intermediate calculations.) c. What is the average cost per burger when the firm produces 1.65 million hamburgers? (Round your answer to 2 decimal places. Do not round intermediate calculations.) d. What is the average cost when the firm produces 3.3 million hamburgers? (Round your answer to 2 decimal places. Do not round intermediate calculations.) a. b. C. d. Fixed cost Variable cost Average cost per burger Average cost per burger million million
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 10E: Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22...
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